ASCM Insights

The Deep-Space Mastery of Artemis II’s Supply Chain

Fri, 10 Apr 2026 00:00:00 -0500

Forget “one small step” — Artemis II is a giant leap made up of thousands and thousands of steps, each painstakingly orchestrated. And while the world watches the astronauts make history, those of us in supply chain know the real magic is happening behind the scenes, with dedicated partners synchronizing one of the most complex handoffs in history.

In fact, the mission leveraged the expertise and labor of more than 2,700 suppliers — a vast network of international partners working together toward top-tier standardization and visibility. “One of Artemis’s most critical tools is its digital thread,” Forbes reports. “This is a continuous record that links design, engineering, manufacturing, testing and integration. Every component has a documented history, and every change is tracked and verified. This level of visibility ensures that ... decisions happen faster and problems can be pinpointed and resolved quickly.”

Contributors to this impressive supply chain include the following:

Lockheed Martin managed the advanced propulsion systems, avionics, ground testing and precision docking capabilities.

Northrop Grumman supplied critical safety systems, including the launch abort and attitude control motors.

The high-pressure helium tanks for Orion's flotation system were produced by Aerojet Rocketdyne.

Constellium manufactured the “tip-to-tail" aluminum, which took more than 20 years of research and development to perfect.

The astronaut’s bespoke spacesuits came from David Clark Company and are designed to sustain life for up to six days.

Rayotek provided the glass for the windows, which are several layers thick to protect against micrometeoroids, bacteria and mold.

Seventeen unique switch controls were manufactured by Otto Engineering, which, coincidentally, was founded in 1961 — the same year the first human went into space.

Today, space travel is advancing so rapidly that it’s actually starting to strain global networks. “Many suppliers were originally structured around low-volume, high-cost government programs with long development timelines. The current market demands faster production and much higher output,” per Space News. However, government demand is notoriously unreliable, and many suppliers hesitate to increase inventory without clear, long-term viability. Along with persistent workforce shortages and rigorous testing requirements, extremely long lead times are inevitable. As the gap between government standards and commercial speed continues to widen, the industry’s resilience will depend on leaders who can synchronize these conflicting demands with precision.

From mission control to career control

While few of us will ever manage a lunar payload, the core principles of synchronization and traceability are exactly what define high-performing supply chains here on Earth. Indeed, the success of Artemis II reminds us that the most valuable assets in any network are the supply chain professionals who make it all possible. Elevate your own expertise by earning the Certified in Logistics, Transportation and Distribution (CLTD) credential. You’ll learn how to fully integrate macro and micro logistics, conduct capacity planning, orchestrate order management, and much more. Sign up today — the next giant leap in your career starts now.

Earn your CSCP: Your Guide to APICS Certification Success

Tue, 07 Apr 2026 00:00:00 -0500

Tariffs cause chaos within global trade. Extreme weather disrupts the fabric of commerce and distribution. Raw material costs fluctuate rapidly. Regulations continue to shift. Earning your Certified Supply Chain Professional (CSCP) designation is becoming a critical requirement for navigating the volatile supply chain landscape. The credential prepares you to make data-driven decisions that streamline operations, integrate risk management, and provide the foresight you need to predict and pivot in the face of the next disruption.

What is the CSCP program for supply chain professionals?

The APICS CSCP designation signals mastery of a defined body of knowledge and can support career growth and salary increases. It certifies your ability to build resilient operations and implement modern supply chain technologies. For organizations, it can help improve alignment of the global supply chain to business objectives and strengthen productivity, collaboration and innovation.

The CSCP is one of four APICS globally recognized certification programs, alongside Certified in Planning and Inventory Management (CPIM); Certified in Logistics, Transportation and Distribution (CLTD); and Certified in Transformation for Supply Chain (CTSC). For the best chance of success, it’s highly recommended that you complete a training course through ASCM’s learning systems (more information on that follows). Passing the exam awards you a globally recognized certification that helps you excel throughout your career.

"The certification provides the lens to see the global supply chain as a cohesive, interconnected web of commerce. This broader view is essential for staying agile in the face of today’s constant market shifts.”

—Alan “Augie” Peterson, CSCP, Manager, Supplier Management, Boeing

What are the benefits of obtaining a CSCP designation in supply chain management?

When you earn a CSCP designation, you are better positioned for a salary increase, greater confidence in your job performance, and more recognition at your current company or with recruiters. The 2025 ASCM Supply Chain Salary and Career Report revealed that people working in supply with a CSCP designation enjoy a median of up to 33% increase in their annual salary compared to supply chain professionals without any credentials.

CSCP salary for supply chain career advancement

Career advancement often hinges on specialized expertise. While the 2025 ASCM Supply Chain Salary and Career Report shows median salary increases reaching as high as 33% for CSCP holders, even a conservative gain is transformative. For instance, a supply chain manager might see a 26% boost, moving from a $100,000 base to $126,000. Beyond the paycheck, this designation provides the data analytics skills needed to identify bottlenecks and optimize end-to-end operations.

CSCP salary for people starting their career in supply chain

If you’re early in your career — or transitioning from another field — the CSCP program can help you enter supply chain roles with stronger positioning and clearer advancement pathways. Many professionals move into supply chain from backgrounds including sales, retail, insurance or SaaS, bringing valuable transferable skills such as communication, negotiation and problem‑solving.

Roles including buyer and supply chain analyst often serve as entry points, with salaries that grow as responsibility and technical expertise increase. Earning a CSCP credential can help you progress more quickly by demonstrating validated supply chain knowledge, making you more competitive for higher‑level roles and stronger compensation discussions earlier in your career.

CSCP holders often stand out in interviews because the certification signals commitment, industry fluency and readiness to contribute beyond an entry‑level scope. Over time, that credibility can translate into faster promotions, role changes and higher salaries.

“When evaluating talent, I consider a CSCP candidate to be just as qualified as someone with a dedicated four-year supply chain degree.”

—Gaylen Haas, CSCP Instructor of Supply Chain Solutions, Fox Valley Technical College

Is a CSCP worth it?

A CSCP is worth it if you are looking to advance your supply chain career. It will deepen your understanding of supply chain operations, instill greater leadership confidence, and distinguish you to recruiters seeking top-tier supply chain talent. The CSCP program will teach you how to optimize the end-to-end flow of materials and information, signaling to employers that you have mastered the latest best practices and technologies. For example, you’ll learn how to:

Review manufacturing capabilities and total cost of ownership to analyze make-or-buy decisions.
Negotiate terms and conditions, pricing, and delivery parameters to maximize profit and increase customer service.
Develop master schedules and data-based reporting to align inventory with demand.
Apply continuous improvement philosophies, such as lean, six sigma, total quality management and the theory of constraints.
Evaluate trade considerations by understanding import and export regulations and foreign and free trade zones, as well as the latest tariff restrictions.
Incorporate reduce, reuse, recycle and recover waste hierarchies.
Cultivate customer and supplier relationships and track key performance indicators to enable continuous improvement.
Identify potential risks using AI and data analytics to determine contingency planning and risk mitigation.
Develop sustainability metrics and adhere to social, environmental, safety and quality accreditations and certifications.
Understand and assess the impact of newer innovations, such as Internet of Things (IoT), quantum computing, control towers and blockchain.

How do you earn a CSCP designation for supply chain management?

The APICS Learning System offers three options: self-study, instructor-led learning and instructor-supported learning. Choosing the format that best meets your unique learning style will reinforce your engagement and increase your likelihood of success. Whichever option you select, you’ll gain access to robust tools and expert resources designed to elevate your learning and prepare you for the exam.

CSCP self-study

The CSCP self-study learning system is a great option for those who want to learn at their own pace with online lessons. You’ll have access to downloadable content and interactive learning activities, as well as ample exam preparation tools.

CSCP instructor-led learning

The CSCP instructor-led learning system pairs you with an APICS-recognized instructor, who will guide you through the exam content. Many instructors also offer online options so you can learn virtually.

CSCP instructor-supported learning

The CSCP instructor-supported learning gives you access to all online learning content plus personalized support from a dedicated APICS-recognized instructor. This option is perfect for people who need more flexibility.

“The CSCP program walks students through the pros and cons of different functional areas, showing them how their specific actions affect the rest of the organization. The result is a more cohesive team that finishes projects faster and with much better results.”

— Gaylen Haas, CSCP Instructor of Supply Chain Solutions, Fox Valley Technical College

When choosing between the three options, think about accountability: If you are a self-starter and accustomed to working on your own, self-study option is likely for you. If you prefer having someone to help keep you engaged, an instructor is a perfect advocate. No matter which option you choose, you’ll get the knowledge you need to prepare for the CSCP exam.

Best practices for passing the CSCP exam

CSCP instructors have extensive real-world experience and provide critical one-on-one support to help learners thrive. Over years of instruction, they’ve identified key strategies that consistently lead to success:

Break the content into manageable sections to grasp complex concepts.
Actively engage in discussions and leverage the provided study tools.
Invest adequate time to read and internalize the content.
Seek help from your instructor when you need it.
Choose the format that best suits your schedule and learning style.

Students find the most success by approaching the material with a disciplined, thorough strategy:

Read the entire CSCP Learning System thoroughly.
Use the provided flashcards to strengthen recall and retention.
Use the practice questions to identify and improve weaker areas.
Review notes comprehensively before the exam.

“Rather than focusing on simple recall, the exam questions are structured to facilitate deep learning. It’s a sophisticated approach that prioritizes conceptual understanding over basic memorization.”

— Alan “Augie” Peterson, CSCP, Manager, Supplier Management at Boeing

Take the lead –– start your CSCP learning today

Recognized industry-wide for its excellent curriculum and flexible learning styles, the CSCP credential will mark you as a valuable asset to any organization. Don’t wait any longer to step into the career you deserve. Completing the CSCP program will give you the confidence and knowledge you need to take on greater responsibilities and increase your earnings.

Get Started

CSCP FAQs

Below are a few extra FAQs about earning your CSCP or any APICS certification from ASCM’s webinar, Ready. Set. Certify: Your Guide to APICS Certification Success. ASCM members have access to watch the full webinar on-demand.

What does CSCP stand for?

CSCP stands for Certified Supply Chain Professional. It is a certification that designates the recipient's ability to assess, implement and lead supply chain operations.

What is the APICS Learning System and what's included?

The ASPICS Learning System is designed to align with current exam content and is built to support different learning styles. A purchase includes printed textbooks and access to an online learning platform with readings, quizzes, flashcards, audio/video learning and progress tracking.

Are the printed books the same as what's in the online APICS Learning System?

The printed textbooks contain the same reading material as the online system. However, the online platform also includes quizzes, flashcards and other resources you won’t get from print alone — so it’s recommended that learners use both.

What is the pretest for the APICS certification exam, and when should I take it?

When you first log into the Learning System, you’ll see a 50-question pretest. The recommendation is to take it right away — before studying — so the system can identify knowledge gaps and generate a more personalized study plan.

How do the topic quizzes work in the APICS Learning System?

Most topic quizzes are around 20 questions and can be taken multiple times. The system provides rationales after each question (whether you answered correctly or not). A common benchmark is aiming for about 80% to demonstrate proficiency, then revisiting topics where your score is lower.

Do I really need to use the flashcards to prepare for the APICS exam?

Flashcards are extremely helpful because key terms are important to know before sitting for the certification exam. You can use them online or print them (including double-sided) for offline studying.

Can the APICS Learning System content be read aloud?

Yes, audio is available for the reading materials, which can help if you prefer to learn by listening (or want to reinforce what you’ve read).

Can I study for the APICS certification exam offline?

You can download the reading materials as epub files for offline reading (helpful when traveling). Quizzes are not downloadable, so you’ll need an internet connection for those.

What is the APICS practice exam and how should I use it?

The APICS practice exam is built from retired exam questions and is intended to emulate the real test experience. It includes 150 questions and is timed for 3.5 hours. Because the questions do not change across attempts, it’s recommended that you save it for later in your study plan to get the most accurate read on readiness.

Can I retake the APICS certification practice exam, and will the questions change?

You can retake the APICS practice exam as many times as you like, but the questions will not change. Quizzes, however, may present different questions on retakes.

How long does it take to prepare for the CSCP exam?

A CSCP typically takes an average of 60-100 hours of study time (with variation by background and pace). Many learners target roughly a six-month timeline so they have enough time to digest the content without waiting so long that they lose momentum.

What is the APICS certification exam format (number of questions and time limit)?

The exam consists of 150 questions, and you have 3.5 hours to complete it. You must receive a passing score of 300 out of a maximum of 350.

Can I take the APICS certification exam online, or do I have to go to a testing center?

Exams are administered via computer-based testing either at an in-person testing center or through online proctoring (OnVUE). The best option depends on your situation and testing preferences.

When should I schedule my APICS certification exam?

Schedule your exam as early as possible after purchasing your authorization to test. This can help with seat availability and date/time options. Candidates who schedule early and test within about three months of completing preparation tend to have higher first-time pass rates.

How far in advance can I schedule the APICS certification exam, and is there a rescheduling fee?

You can schedule as far as 12 months out, and you can reschedule if needed. A rescheduling fee is charged, so it’s best to pick a date you can confidently keep.

Do I need to bring a calculator to the APICS certification exam?

A calculator is integrated into the exam software (including for online testing), so you typically won’t need to bring your own.

Am I allowed to use notes during the APICS certification exam?

Notes are not allowed during the APICS certification exam. A one-to-one word translation dictionary may be allowed, as long as it does not include explanatory content.

How long do I have access to the APICS online Learning System?

Access to the APICS online Learning System is available for 365 days (one year) from the date of purchase.

Are payment plans available for the APICS certification exam, and can my employer help pay for certification?

Various payment plans are available to help fund the APICS certification exam via platforms such as PayPal. However, it is recommended that your employer help pay for your upskilling. Some employers offer tuition reimbursement that can be applied to certification. If further convincing is needed, you can use ASCM’s Approach Your Boss Toolkit, designed to help you request funding from your employer.

What happens if I don't pass the APICS certification exam on the first try?

If you purchased a bundle, it may include a free retake with a defined retake window (about 6 months). If you did not purchase a bundle, you may need to purchase another exam credit to retake the test.

Does the APICS certification expire, and do I need to renew it?

There is a maintenance window of five years after you earn your APICS certification. You have a 90-day grace/suspension period after expiration during which you may still submit maintenance points; after that, you may be required to take the exam again.

What do I receive after I pass the APICS certification exam?

After passing the APICS certification exam, you’ll receive an official certificate, and you may be eligible for a verified digital badge (via Credly). You can also use the post-nominal acronym associated with your certification after your name.

Special thank you to Alan "Augie" Peterson, CSCP, Manager, Supplier Management at Boeing, and Gaylen Haas, CSCP Instructor of Supply Chain Solutions, Fox Valley Technical College, for their insights and contributions to this guide.

Strategic Momentum for ASCM’s Next Chapter

Fri, 03 Apr 2026 00:00:00 -0500

When I first stepped into a leadership role at this organization more than two decades ago, the scope of supply chain was often defined by a manufacturing shop floor or the transit of goods from point A to point B. Today, that scope is unrecognizable. The chain has become a massive, living web of geopolitical shifts, technological leaps and systemic resilience. We are quite literally managing the stability of the modern world, and it has been the honor of my professional life to navigate this transformation alongside you.

As I prepare to conclude my tenure as CEO at the end of this year, I find myself reflecting on the extraordinary journey we have shared. We have lived through a shift from just-in-time to just-in-case, and more recently, toward a focus on total resilience and digital maturity. Of course, there was no greater catalyst for this than the pandemic. In those moments of unprecedented disruption and deep uncertainty, the world finally saw what we have always known: Supply chains are the threads that bind our global society. When the world felt like it was pulling apart, we were the ones holding the connections together.

Indeed, we didn't just witness change; we drove it. We transformed APICS into ASCM, creating a global reach that now touches every corner of the world. We expanded our relevance, becoming the leading voice in supply chain thought leadership, research, education and corporate transformation. Most importantly, we elevated the profession. Supply chain leaders are now recognized as strategic architects of the modern economy, and ASCM has been the platform that empowered that rise.

I am immensely proud of our people. From our dedicated staff to our global network of volunteers, partners and members, you are the heart of this community. We have built an organization that doesn’t just react to the future, but helps define it. Whether it was navigating trade shifts, integrating AI or championing sustainability, we did it as a cohesive community.

While my time as CEO will end, our momentum will not. The board has already initiated a rigorous search for a leader who will take this organization into a new era of growth. It’s also important to note that this transition was part of a long-term plan, ensuring that ASCM remains on the firmest possible footing. As we move toward the next chapter, I remain fully engaged and focused on our strategic priorities.

Join me at CHAINge 2026

I can think of no better place than ASCM’s flagship event to celebrate our shared achievements. CHAINge is the premier gathering for supply chain professionals, and I would be honored to have you there as we mark this milestone. You’ll experience world-class education, gain perspectives on tech transformation and global trade shifts, and join a community where leadership grows. I look forward to seeing you there to share a memory, a celebration and a vision for what’s next.

Supply Chains Score a March Madness Slam Dunk

Fri, 27 Mar 2026 00:00:00 -0500

As March winds down, millions of basketball fans are locked into the raw energy and bracket-busting drama of March Madness. This annual tournament is more than just a series of games; it’s a shared cultural moment that connects us through the pursuit of a national championship. The NCAA Division I tournament started less than 100 years ago, but the sport was actually invented during a 19th-century Massachusetts snowstorm. To keep students active indoors, the first basketball game involved only two peach baskets, a ball and a “complete brawl” on the gym floor.

Unsurprisingly, the infrastructure required to pull off today's national spectacle has evolved into a masterpiece of global synchronization. Take Spalding, which manufactures basketballs with an astonishingly far-flung supply chain: Cowhide is sourced from North America; pressed on machines fitted with German-made embossing plates; shipped to China for manufacturing; and assembled with nylon winding made in Japan and rubber from Malaysia or Vietnam, explains ESPN. Finished balls are then shipped via ocean freight to Alexander City, Alabama, where they’re tested in a process that can take four weeks. “Balls are checked for diameter, weight and rebound — so they're dropped from six feet and expected to bounce 52-56 inches high.”

For Wilson, the official basketball manufacturer of the NCAA, the process is similar and even starts with the same Chicago-based leather supplier, Horween Leather Co., per The Los Angeles Times. “Turning a blue-tinted steer hide into a pebbled sheet of leather ready for shipment to a Chinese factory, where Wilson’s basketballs are manufactured, takes about 22 working days,” including tanning, drying, dyeing and embossing.

But the equipment isn’t the only aspect of the sport that requires an intricate supply chain. “College hoops’ postseason introduces a flurry of last-minute transportation, accommodation and security challenges to more than a dozen cities, requiring aid from countless logistics professionals and extreme flexibility from everyone involved to pull off its “unique brand of controlled chaos.” The NCAA also relies on third-party venders and operating teams to manage moving hundreds of athletes from game to game. Plus, custom merchandise needs to be produced and stocked in time for the big event. “The tournament is a case study in the importance of reliable expedite and just-in-time shipping .”

Supply chain professionals for the assist

If our global supply chain had a March Madness position, it would definitely be the elite point guard. You might not always see the work happening behind the scenes, but you certainly notice when the ball isn't moving. It’s the art of the no-look pass — executing complex maneuvers so seamlessly that the rest of the world only sees the score.

This is the spirit that drove ASCM to create our docuseries “The Chain: How the World Works,” streaming on Prime Video. Over six episodes, we shed light on how global supply chains shape the products and systems consumers use every day. For instance, the Sports episode explores the complex logistics required on and off the field, track and court to bring fans closer to the big game. Check out the full series today to discover fascinating innovations and meet the dedicated professionals keeping the ball in play.

Empower Women for Superior Supply Chains

Tue, 24 Mar 2026 11:00:00 -0500

The women in supply chain management are a cornerstone of operational excellence. After all, organizational maturity hinges on the ability to integrate varied perspectives and frameworks into decision-making and technical orchestration. To ensure a wider range of expertise, it’s vital to place diversity efforts at your organization’s core. Several recent studies confirm this strategic imperative:

The 2025 Gartner Women in Supply Chain Survey shows enhanced performance metrics are a direct result of the explicit inclusion of gender diversity goals on management scorecards. Further, successful organizations report significantly higher employee engagement and lower attrition in middle management.

As AI becomes ever more critical, the McKinsey & Company report Women in the Workplace 2024 notes the importance of AI adoption parity. Gender-diverse leadership ensures more equitable support; without it, men currently receive more encouragement to use agentic AI, potentially creating a new digital divide in entry-level planning roles.

According to the DHL Group 2024 Progress Report, diverse management teams are more effective at integrating environmental, social and governance KPIs into daily operations, aligning decarbonization targets with fundamental business outcomes such as cost optimization.

These efforts to achieve a stable, future-proof network are further supported by cognitive diversity in transformation, with MIT Center for Transportation & Logistics 2024 Analysis showing women leaders to be transformation catalysts, particularly in redesigning supply chains for net-zero goals.

The state of women in supply chain

While entry-level representation is reaching historic highs, a significant drop-off persists at the director and vice president levels. This “middle-management squeeze” prevents organizations from fully leveraging the risk-mitigation and collaborative problem-solving skills that diverse teams naturally bring to complex global logistics.

Persistent barriers often include a lack of sponsorship, rather than a lack of mentorship. Additionally, the tendency to overlook quiet contributors in favor of those who engage in traditional, high-volume self-promotion can inadvertently stall the advancement of highly competent female professionals. Following are some specific examples from key industry sectors:

Women in manufacturing: Despite progress, women in this sector often face gendered perceptions of technical aptitude, which can result in being overlooked for high-level engineering or shop-floor management roles. However, the shift toward Industry 5.0 — which prioritizes human-centric collaboration alongside automation — is opening many new doors. Women are increasingly spearheading lean initiatives and shop-floor digital transformations, proving that a balanced workforce leads to safer environments and higher production yields.

Women in CPG: A persistent challenge in the consumer packaged goods space is the lack of representation in procurement and global sourcing roles. Even so, companies with gender-diverse supply chain leadership are better positioned to respond to rapidly shifting consumer sentiments regarding sustainability. These organizations often excel at last-mile innovation and circular economy modeling, directly linking diversity to improved market responsiveness and brand loyalty.

Women in trucking: The transportation industry struggles with workplace safety and a lack of inclusive infrastructure, from inadequate roadside facilities to hostile environments, which can deter female talent. While the driver's seat remains male-dominated, women are rapidly taking the wheel in transportation management and fleet optimization. By applying data-driven approaches to route planning and fuel efficiency, female logistics managers are helping the industry tackle its most persistent overhead challenges and labor shortages.

Women in retail: Women in retail often encounter a glass ceiling at the executive level, where they are highly represented in store operations but significantly less so in the logistics and distribution leadership that drives the back end. Retail supply chains face the unique pressure of omnichannel complexity, an area where women can excel at managing the intersection of customer experience and inventory precision. Female executives in this space are frequently at the forefront of integrating AI-driven demand forecasting with traditional replenishment cycles.

What senior leadership can do

To achieve true technical and operational integration, leaders must implement structural changes that safeguard career trajectories and ensure technological equity. Following are actionable strategies to empower the women in your supply chain organization:

First, achieving parity requires a deliberate mapping of technical and leadership development paths. When career pathways are transparent and meritocratic, women are more likely to seek out the types of high-visibility roles that are traditional steppingstones to the C-suite.

Next, normalize diverse management scorecards. Move gender diversity from a passive HR initiative to an active operational KPI. By embedding specific diversity and inclusion targets directly into executive and middle-management performance reviews — rather than keeping them as siloed social goals — you create a direct accountability loop that correlates with the enhanced performance metrics and lower attrition rates seen in the Gartner research.

It’s also essential to audit for AI adoption parity. Proactively monitor the deployment of agentic AI and advanced planning tools across your workforce to prevent a digital divide. Establish formal training cohorts that ensure women in entry-level and middle management roles receive equal encouragement and resources to master autonomous orchestration tools, keeping leadership pipelines technically robust and equitable.

The historically “always-on” nature of the supply chain work environment can conflict with the need for flexible arrangements, often disproportionately affecting women. Organizations that adopt asynchronous communication and flexible scheduling see a marked improvement in the retention of their top female talent.

Internalized pressure to be perfect rather than agile can lead to imposter syndrome and confidence gaps, where qualified women may hesitate to apply for roles unless they meet 100% of the criteria. Addressing this through organizational culture changes encourages a growth mindset where technical experimentation and leadership potential are valued over static checkboxes.

Finally, institutionalize sponsorship. Create formal programs specifically designed to counteract the self-selection bias often found in high-stakes global trade and technology roles. By connecting high-potential female professionals with senior mentors who can guide them through complex transformations — from Scope 3 initiatives to harmonized tariff schedule reclassifications — you cultivate a loyal, expert workforce prepared to lead the organization's most critical technical functions.

Support women with professional development

ASCM provides a suite of resources designed to help the women in your organization bridge the gap between individual potential and organizational excellence. Take the next step in empowering your workforce or advancing your own career:

ASCM Mentor Program: Woman at all levels of their supply chain careers can connect with a global network to share ideas and build the cross-functional relationships essential for leadership. Access this community in the ASCM Supply Chain Knowledge Center.

Career resources: Help the women at your company stay ahead of the digital divide with expert advice, white papers and webinars for mastery of the latest tools and advancement into senior orchestration roles.

ASCM Awards of Excellence: Ensure your female supply chain leaders get the recognition they deserve. Whether you are nominating a Supply Chain Performance Champion driving transformation via SCOR DS or a Sustainability Champion integrating enterprise standards, these awards elevate those making a positive impact. There is no cost to enter — apply today to join an exclusive community of forward-thinking professionals.

Unlock your organization's full leadership potential

The transition to a more resilient and technologically advanced supply chain is inseparable from the women who lead it. Use these strategies and the ASCM resources to ensure a leadership architecture that values diverse expertise as much as technical precision — thus creating a culture in which the next generation of female supply chain experts can truly thrive.

Supply Chains Brace for a Decade of Structural Disruption

Thu, 19 Mar 2026 23:00:00 -0500

As the war in Iran continues, the reopening of the Strait of Hormuz will not be a light-switch event for global trade. Even if hostilities cease today, the long tail of recovery involves clearing naval mines, renegotiating high-risk insurance premiums and untangling a massive maritime backlog.

“The United States and Israel have made quick work of Iran’s heavy artillery and navy … but Iran’s grip over the Strait of Hormuz has proven much trickier to pry back,” notes Barron’s. “The fate of global energy markets — and the global economy — rests on whether ships can traverse the 22-mile-wide waterway from the Persian Gulf to the Gulf of Oman, through which 20% of the world’s oil and liquefied natural gas passes.”

Unfortunately, there’s no clear plan in place to reopen the Strait. And if the closure continues, experts forecast oil prices will climb to as much as $150 per barrel, “a level that could send the United States and other economies into recession,” Barron’s predicts.

This isn’t to say oil has been completely blocked. According to PBS News, about 90 ships have sailed through the Strait since the war began, mostly vessels unregulated by Western governments. Iran has also exported more than 16 million barrels of oil to buyers in China, India and Pakistan. Basically, the Strait is “closed selectively” while allowing certain Iranian exports through.

I recently spoke with Former Secretary of Commerce Gina Raimondo about navigating geopolitical risk in this time of uncertainty. She warned that, while the U.S. involvement may conclude soon, the risk of miscalculation could lead to a "protracted war." Even after the Strait of Hormuz is secured, the recovery long tail remains daunting: Clearing the passage will take weeks, realigning global logistics will require another three months, and fully rebalancing supply networks will likely take at least half a year.

This shift suggests that we are no longer managing a temporary shock, but a fundamental structural change. With a decade of potential disruption ahead, the region's instability necessitates a move toward deliberate redundancy. Raimondo advises supply chain leaders to "pay the price for more resilience" to prepare for this new reality. Her mandate for executives is clear: Shore up balance sheets now to withstand a radically less predictable global landscape.

New structural realities

From maritime backlogs to long-term network rebalancing, global volatility requires end-to-end strategy and specialized logistics. Start by watching the webinar with Former Secretary Raimondo. Then, equip your leadership to build resilient, redundant networks with the APICS Certified Supply Chain Professional desigation. Finally, look to the Certified in Logistics, Transportation and Distribution program for industry-leading education on logistics frameworks, metrics, network design, transformation and ongoing improvement. Start your journey today.

War in Iran Perpetuates Systemic Industry Shocks

Thu, 12 Mar 2026 23:00:00 -0500

The escalating conflict in Iran continues to vibrate through the global economy. As the initial impact on oil and gas prices unfolds into long-term volatility, the aperture of risk is widening. In the news this week we find automotive, aviation and agricultural sectors reporting severe threats to production and distribution as regional instability deepens.

After the Trump administration canceled requirements for electrical vehicle production last year, automakers responded by prioritizing gas-powered models. For instance, “Ford killed its much-hyped, electric F-150 pickup and tore up an electric-vehicle strategy years in the making,” per The Wall Street Journal. As a result, manufacturers are experiencing “whiplash,” as gas prices soar by 15% and customers balk at buying traditional gas-guzzling cars. “If gas-price volatility continues, then automakers that already have more fuel-efficient models may stand to benefit the most,” the Journal continues.

Political instability and oil prices are also creating a headache in aviation. Airlines are being forced to extend flight paths to avoid conflict airspace, increasing flight lengths and operating costs, Newsweek reports. Even carriers that don’t typically fly through the Middle East are experiencing knock-on effects. Because many airlines have moved away from hedging — the practice of locking in fuel costs via futures or options — they’re now forced to purchase at market rates. Every extra dollar translates directly into more expensive plane tickets.

Reuters says disruption to air cargo is also a concern, noting that we're already experiencing a “22% reduction in global air cargo capacity.” Plus, air cargo accounts for about one-third of global trade by value, and “capacity on the corridor from Asia to the Middle East to Europe has declined 39% since the start of the conflict.”

Agricultural commodities comprise some of that cargo, also leading to higher prices. “Access to fertilizers may worsen for some of the poorest countries including Sudan, Somalia, Tanzania and Mozambique, which get a significant share of their fertilizer imported through the Persian Gulf,” Bloomberg explains. Food shortages have already been reported in Lebanon, Gaza and Iran.

Navigating this level of cross-sector dislocation requires a structured defense. Gartner has outlined the following steps for supply chain executives:

Assess vulnerabilities across logistics lanes and product categories with deep regional dependencies.

Engage suppliers to reveal sub-tier exposure and validate contingency plans.

Assess enterprise-wide stability, including potential impacts on personnel, cybersecurity and financial operations.

Build scenario plans for radically different regional outcomes.

Reinforce physical logistics flows and digital infrastructure to prevent data or communication gaps.

Adopt a balanced approach to freight management, guarding against compounding delays without overreacting to short-term price spikes.

Elevate high-consequence risks to C-suite colleagues and the board while providing direct support to risk owners at the execution level.

Look beyond the immediate crisis to prepare for cascading effects.

From operational response to executive leadership

At the Gartner research notes, success at the highest levels of supply chain requires turning global disruption into executive-level insight. Begin your journey to the executive table with our latest guide, The Strategic Playbook for Aspiring Supply Chain Leaders. You’ll get hands-on executive readiness assessments and tactical frameworks for growth. Map your skills against the CSCO role to identify gaps, then apply step-by-step tools to improve, gaining tangible proof of your readiness. Supercharge your career and prepare to lead with confidence — download the free playbook today.

Robotics and the Supply Chain Professional

Sat, 07 Mar 2026 00:00:00 -0600

Today, the narrative of robots replacing humans has been largely debunked by the reality of the modern warehouse. Automation has become the "new recruiter," attracting a generation of tech-native professionals who view distribution centers as command centers rather than manual labor sites. This is a unique opportunity to orchestrate advanced systems that prioritize problem-solving over physical repetition. By leaning into this shift, leaders are realizing that a robot’s greatest ROI isn't just picking speed — it’s the preservation of human intellectual capital and the elimination of burnout.

For instance, The Wall Street Journal reported on retailers including Mondelez International and Nordstrom, which are seeing an influx of young professionals interested in “building no-touch distribution centers and factories and in online monitoring systems that eliminate the need for workers to adjust things throughout production.” Sandra MacQuillan, executive vice president and chief supply-chain officer at Mondelez, explains that these types of jobs are generally perceived as more rewarding than traditional warehouse work because they are “using your brain rather than asking you to do manual work all the time.”

In a report about the future of autonomous robots in supply chain, Deloitte agrees: “Using autonomous robots to perform repetitive, mundane manual tasks can also improve employee satisfaction as they shift to more strategic and mentally stimulating work. … As autonomous robots become more sophisticated, the setup times are decreasing, they require less supervision, and they are able to work side by side with their human counterparts. The benefits are expanding as autonomous robots become capable of working independently around the clock with more consistent levels of quality and productivity, performing tasks that humans cannot, should not, or do not want to do.”

Inspire and engage employees

Investments in robotics and automation are proven to attract new recruits to supply chain. Scope Recruiting, a staffing agency serving supply chain and operations, recently noted, “The industry has become increasingly complex, with technology and data analytics driving efficiency and innovation. However, the supply chain talent pool has not kept pace with these changes, resulting in a shortage of skilled professionals.”

Most people want to learn more about their profession, grow in their roles and progress in their careers. “Companies can provide opportunities for training and development. This not only helps employees acquire new skills but also demonstrates the company's commitment to investing in their workforce,” the company wrote in an article for LinkedIn.

Furthermore, according to an MHI Annual Industry Report, 39% of leaders view robotics as a key competitive advantage. The goal is to fill workforce gaps and upskill existing teams rather than replace jobs. While 29% of firms hesitate due to the initial $2 million investment required for a typical four-robot setup, Vanderlande research shows these systems deliver a two-year payback and 67% savings in operational expenses.

Training employees to use robots is a booming industry itself. 3DS DELMIA, a South Korea-based software company, assists companies as they determine how robots could augment their business before they implement the technology. By using robotic simulation before installing any new equipment, companies can design, install and ramp up robotics systems with confidence that they will perform as designed. As a result, they can reduce operational costs, increase productivity and efficiency, avoid costly mistakes, and ultimately transform their operations.

Stephane Rolland, DELMIA Robotics Roles Portfolio Director explains, “Thanks to robotic simulation, we can evaluate and implement changes to ensure a different scenario or outcome. This all helps us to plan the best protocol for the production.”

The ability to test the functionality in a specific location, before committing to it, enables supply chain decision-makers to feel confident in their investment. But perhaps most importantly, involving employees in the process empowers them to play an active part in automation, alleviating fears and inspiring them to make the most of their robot counterparts.

Discover the countless possibilities of robotics and automation with ASCM’s Supply Chain Technology Certificate.

Editor's note: This article has been updated to reflect current research. The original publish date was May 2025.

Sudden War Upends Middle East Shipping Routes

Fri, 06 Mar 2026 00:00:00 -0600

The abrupt outbreak of war in Iran is first and foremost a human catastrophe, but the hostilities have also triggered a secondary crisis within our global supply chains. Some disruptions are immediate; others are deep-seated fractures that will take weeks to fully manifest.

First, traffic in the Strait of Hormuz is at a standstill following military strikes on an Iranian warship off Sri Lanka, reports Reuters. The closure of this vital passage effectively severs a primary artery of the global energy market, as more than 200 ships are at anchor in open waters. Further, Qatar is shutting down its gas liquefaction and won't resume normal production or exports for at least a month. Iraq also cut its oil production in response to the conflict, and Kuwait, Saudi Arabia and the UAE are struggling to adapt.

The Persian Gulf nations supply vast quantities of the world’s crude oil, fuels, natural gas and fertilizer feedstocks, per Bloomberg: “Almost all of the region’s output has to pass through Hormuz, making it a choke point for a fifth of global oil and liquefied natural gas supplies, and half of the global seaborne trade of sulfur.” Traffic has plummeted 95%, and any ships that are managing to pass through have turned off their location-tracking devices to avoid being targeted in a future attack. This widespread disablement or signal jamming has left the Strait in a “digital fog,” Bloomberg continues.

About 200 million barrels of oil pass through the area on a typical day, and the stark decrease in supply is having a huge effect. “Global crude oil prices — already elevated due to the risk of war — have shot up more than 10% since the United States and Israel attacked Iran,” notes NPR, and natural gas prices in Asia and Europe have risen even more dramatically. Some countries have oil stockpiles, and some oil producers can reroute their product to other ports. “But those changes can't make up all of the shortfall,” NPR continues, as storage facilities in the Middle East fill up. In addition, market volatility is triggering a literal tug-of-war between continents, according to The Wall Street Journal. This was underscored this week as a liquefied natural gas tanker diverted from its European heading toward a higher-bidding Asian market, signaling a dangerous period of instability for regions that can't compete on price.

A surge in costs isn’t the only domino effect experts have concerns about. “Pharmaceuticals from India, semiconductors from Asia and oil-derived products like fertilizers that come from the Middle East” are all at risk, reports the AP. Plus, closed airspace in Bahrain, Iran, Iraq, Qatar and the UAE has “stranded tens of thousands of people and cargo.”

Maintaining clarity

As the "digital fog" over our trade lanes thickens, the need for solid information and expert perspectives has never been more urgent. For weekly updates on the most pressing topics, be sure subscribe to ASCM Supply Chain Signals. You can also join my upcoming LinkedIn Live conversation with Pete Mento, global trade advisor for Baker Tilly USA. We’ll explore the Supreme Court’s tariff ruling, as well as the current wave of geopolitical disruptions. Whether you're managing sourcing decisions, advising clients on trade risk or leading your organization through uncertainty, this conversation will provide the clarity needed to navigate today's complex environment.

Strategic Tools to Manage Ongoing Trade Upheaval

Fri, 27 Feb 2026 00:00:00 -0600

This week, the U.S. Supreme Court ruled that the widespread tariffs President Trump implemented last April exceeded his authority and must be revoked. Trump then responded with a flat 10% tariff across the globe. After a year of chaos, supply chain professionals must once again adjust their protocols and pricing to reflect the latest version of reality.

The tariffs have been a “drag" on companies, contributing to low morale in manufacturing, increased inflation and a worsening job market, NPR reports. Meanwhile, in order for the U.S. Treasury to repay the taxes collected, “the cost would run to $120 billion, or 0.5% of gross domestic product,” notes The New York Times.

But businesses aren’t counting on that money to meaningfully add to their bottom lines: Refunds, if they happen, could take months or years, as most companies have already taken into account higher shipping, compliance and supply chain operations costs. Unfortunately, “organizations that made massive capital investments in U.S. facilities in order to avoid tariffs may now find their business cases to be flawed,” according to the latest ASCM Insights blog post, which curates advice from several subject matter experts. Furthermore, it may be impossible to reestablish relationships with suppliers that were dropped in favor of cheaper options.

The good news is that many organizations are already discovering some solutions:

Prioritize network insights. As always, end-to-end visibility is paramount. Per DC Velocity, “Companies that have strong visibility into their customs exposure and trade flows will be better positioned to respond quickly to any future tariff rulings.”

Act quickly. Though no one knows when — or if — refunds will be available to businesses, shippers should maintain momentum to be eligible for any potential federal reimbursement, advises the head of research at Freightos.

Ensure clarity and predictability. The Port of Los Angeles offered reassurance that it’s ready to manage any and all fluctuations in cargo volumes: “The only certainty is uncertainty. Freight can’t wait — and certainty helps keep it moving. … Clarity and predictability in trade policy are essential to maintaining cargo velocity, safeguarding jobs and supporting wider economic competitiveness.”

Diversify trade routes. Dr. NoelmHacagaba, CEO at the Port of Long Beach, noted in our conversation last month that Long Beach (incidentally, the site of this September’s CHAINge: North America) was tapping rail connection to key markets to decrease travel time for cargo and keep it moving as quickly and cheaply as possible.

Lean into technology. AI-powered tariff management systems can help make sense of the wildly different tradr rules. Their agentic workflows automate the assignment of Harmonized System codes — the classification that determines what tariff rate applies to any given import — and can calculate country of origin under trade rules, Fortune reports. The model can also help companies calculate the impact of tariffs across their entire trade route and extended supplier network, as well as secure potential IEEPA refunds.

Stay informed. ASCM’s tariff tracker brings you the most important tariff news from global media sources. This free resource also includes links to helpful podcast episodes, expert interviews and more.

Solidify supply chains for the long haul

Regardless of how your organization chooses to approach the tariff question, a strong and stable supply chain will be essential. Leverage ASCM’s free, SCOR-based Supply Chain Maturity Assessment to pinpoint critical capability gaps and precise architectural shifts to advance your people and elevate performance. Start the assessment today.

Navigating the Supreme Court’s Ruling on Tariffs for Supply Chains

Wed, 25 Feb 2026 13:11:00 -0600

In a 6-3 decision, the Supreme Court ruled that the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was illegal. Striking down this IEEPA-driven tariff agenda forces an abrupt reversal for global trade projections. Still, this reprieve has already proven to be short-lived: As of February 25, 2026, the U.S. tariff rate for some countries will rise to 15% or higher from the newly imposed 10%.

As supply chain professionals navigate the ever-changing trade landscape, ASCM has curated the following advice from subject matter experts, including Alastair Charatan, host of SupplyChainTalk and lecturer and supervisor at Cranfield and Oxford Saïd Business School; Rosemary Coates, executive director and founder of the Reshoring Institute; and David Steven Jacoby, managing partner at Boston Strategies. This information is designed to help industry leaders step up to the strategy table and prepare for what’s next.

What supply chain leaders need to know about the Supreme Court tariff decision

Supply chain professionals expect to see increased profit shares for foreign suppliers and a potential boost in consumer demand — provided retailers hold prices steady at the cash register. For instance, this decision is a significant win for U.S. companies importing materials, components and finished goods.

Sectors seeing the most immediate relief include apparel, automotive and electronics. (Although, again, the relief could be immediately offset by a new set of costs.) At the same time, organizations that made massive capital investments in U.S. facilities in order to avoid tariffs may now find their business cases to be flawed. Furthermore, those who severed ties with long-term overseas partners to avoid the tax may find that returning to those suppliers is impossible if those businesses have closed or moved on to new contracts.

Don’t expect quick price drops

While the legal barrier has been removed, pricing relief isn't going to happen overnight. Supply chains likely won't experience significant cost shifts for many months for two key reasons:

Inventory lag: Products currently on shelves were imported with tariffs previously paid; those costs are already baked into the retail price.
Lack of confidence: Leaders are waiting to see if the administration attempts to re-impose duties through other avenues, , which has already begun with the announcement of the 15% Section 122 global tariff.

The compliance reality check

We may see a rise in class-action lawsuits as customers seek to reclaim tariff costs that are repaid to retailers and suppliers by the government. It’s also vital to remember that tariffs are not going away; importers must prepare for the specific compliance requirements of Section 122, which allows for emergency surcharges to address balance-of-payment deficits. They also still face significant compliance risks and costs, including non-IEEPA duties and administrative burdens, such as mandatory licenses and inspection costs. Plus, ongoing strategic uncertainty means supply chain teams must model for a non-zero-tariff world to ensure decisions remain robust regardless of the next political shift.

Impact of tariffs on U.S. manufacturing

If your organization planned to expand U.S. manufacturing solely to dodge IEEPA costs, it’s time to return to the strategy table. The fact that supply chain manufacturing job growth in 2026 has already trended lower than in 2025 suggests that the pure economic incentive for reshoring is weakening. While government-pressured foreign direct investment will likely continue, the pure economic incentive for reshoring has weakened. And with the 150-day window of Section 122 looming, leaders must weigh whether these short-term global tariffs will eventually be made permanent or replaced by another mechanism. Given that factory lead times often outlast a single political administration, a re-backtrack to global sourcing may not be worth the long-term risk.

How to re-evaluate nearshoring and reshoring

For products with high labor content, the search for low-cost alternatives to China — such as India, Mexico and Vietnam — remains a priority despite the recent tariff about-face. However, the economic case for reshoring to the United States now hinges almost entirely on technology. If production can be automated with robotics, advanced machine tools, and 3D printing, the business case for domestic manufacturing remains strong. Unfortunately, this technological pivot means the reshoring of factories may not bring back the volume of jobs many had hoped for.

In this climate of total trade reversals, scenario planning is no longer optional. Organizations must develop multiple, fully realized manufacturing scenarios to mitigate the risks of geopolitics and natural disasters. These alternatives should be plug-and-play, featuring detailed budgeting, market access audits and labor availability assessments for each location. This type of planning doesn’t need to be overly sophisticated, but it must be thorough enough to allow for a 180-degree strategic shift the moment the landscape changes again.

Supply chains in the new tariff landscape

Before rebalancing your supplier networks, watch closely for political signals. A divided government following the next election could lead to a moderation of tax and trade policies over the next two years, forcing yet another strategic about-face. In the meantime, develop alternative manufacturing and sourcing locations in the background so you are ready to execute the moment policy stabilizes.

For many, Mexico remains a lower-cost, more stable alternative during this period of transition. However, simply shifting locations isn't enough; supply chain leaders must develop multi-source resilience, especially for critical parts and raw materials. Responsive logistics networks and comprehensive transit visibility are no longer nice-to-haves — they are essential for maintaining operational performance during a total trade reversal.

As always, focus on building technical resilience. Prioritize these three technology pillars:

Real-time transit visibility to navigate shifting trade lane
Big data analytics to process the impact of sudden judicial reversals and new emergency tariff filings
AI-driven scenario planning to pull the trigger on network changes the moment the landscape shifts again

Supply chain leaders must move beyond reactive measures and build the agility to handle a 180-degree turn in policy at any moment. The total policy changes require moving beyond static spreadsheets and using AI-driven what-if simulations to protect margins against the sudden removal, or reimposition, of global trade barriers.

Stay updated on all the latest tariff news by subscribing to ASCM's weekly Signals newsletter. Subscribe now

FAQs

What is a tariff?

A tariff is an import tax that governments impose on goods and services coming from other countries.

How do tariffs impact supply chains?

Tariffs impact supply chains by increasing costs, shifting sourcing strategies, disrupting supplier relationships, and adding complexity to inventory and logistics strategies.

What changes based on the U.S. Supreme Court tariff ruling?

The U.S. Supreme Court's February 2026 ruling on tariffs impacts the IEEPA-driven tariffs, declaring them illegal. As a result, a complex legal process ensues to determine if refunds will need to be issued to companies that paid the tariffs.

Ancient Granite and Modern Logistics Shape Olympic Curling

Fri, 20 Feb 2026 00:00:00 -0600

Once a niche pastime in the frozen lochs of Scotland, curling has slid its way into the winter sports spotlight. This “chess on ice” is trading its quiet roots for high-stakes drama, captivating audiences with a unique blend of furious sweeping and tactical precision. It is, quite simply, the most oddly satisfying watch on the Olympic roster.

Curlers slide 42-pound granite stones across the ice while teammates vigorously sweep the path ahead to decrease friction and guide the stone's curl. Each 16-stone set weighs 700 pounds and requires custom-built crates for transit — a critical packaging investment given that the stones are valued at $15,000 each.

The challenge of moving the stones is eclipsed only by the geographical constraints of their origin. The microgranite is quarried from the cliffs of Ailsa Craig, an uninhabited Scottish island. Specialized landing crafts and beach ramps are needed to move the five-ton boulders. In addition, to avoid bird-breeding season, harvesting can only happen in November.

After extraction, the granite is shaped and polished at a mainland factory, where it undergoes a rigorous quality-control process overseen by a master technician who has personally vetted every Olympic curling stone for the past two decades. (This intricate journey from raw island granite to precision sports equipment is just one example of the complex logistics explored in the Sports episode of ASCM’s docuseries, The Chain.)

Once the stones are honed and shaped, they’re ready for the Games. This year, the action is taking place at Cortina Curling Olympic Stadium. Of course, reliance on indoor, climate-controlled environments is a modern necessity; historical records from the 16th century describe a game born from winters so harsh that natural lochs froze solid enough for the 700-pound stone sets. Compared to its first 1956 Games, Cortina now has nearly 20% fewer freezing days; thus the need for high-energy, refrigerated facilities. The current stadium was retrofitted to incorporate sustainable materials while enhancing energy efficiency. This involved greening the ice-production process, improving roof insulation and adding a new dehumidification system.

But the curling facility isn’t the only testament to the Olympic committee’s sustainability goals. Milano Cortina 2026 constructed very few new buildings, instead relying on updating existing sports venues and hotels across the Italian Alps to house the events and athletes. In fact, the only new Olympic Village was constructed using PEFC-certified timber sourced from Italian forests that were devastated by Storm Vaia and subsequent bark beetle infestations. This circular supply chain turned millions of cubic meters of damaged conifers into high-performance panels, enabling the project to meet a net-zero carbon target. To further advance sustainability goals, the roof is built from photovoltaic panels to generate peak electricity outputs, and new landscaping will improve cooling during the city’s very hot summers. In fact, the Village’s second life is already planned: It will be turned into affordable housing.

Sustainable solutions for the gold

Take a page from this year's Olympic playbook and lead your organization toward a smaller environmental footprint. By enrolling your team in ASCM's Building a Sustainable Supply Chain course, you’ll gain essential tools for managing the triple bottom line of people, profit, and the planet. Then, scale that impact with the ASCM Enterprise Standards for Sustainability. This SCOR-based framework delivers the world’s first comprehensive supply chain evaluation, ensuring your organization doesn't just compete, but leads the race toward a greener future.

Corning’s Strategic Planning Turns Legacy Glass into AI Gold

Fri, 13 Feb 2026 00:00:00 -0600

From the classic floral dish holding a steaming casserole or the trusty Pyrex measuring cup passed down through generations, Corning has been a fixture in our kitchens for decades. Now, that same spirit of durability is powering the AI revolution. By focusing on vertical integration and employee expertise, Corning has pivoted from household brand to high-tech powerhouse.

The business of internet connection is far from new to Corning. However, the company actually “lost money on fiber-optic cables for nearly 20 years,” reports The Wall Street Journal. But with demand for AI data centers sky-high, Corning has become the “the connector of choice” for giants including Apple and Meta.

Back in 2018, Corning’s head of fiber optics toured a Facebook data center. This inspired the company to invest in creating thinner, tougher cables that move data via light and consume significantly less energy than traditional electrical copper. The new cable, called Contour, “reduces a set of 16 connectors down to a single one,” per CNBC. It’s a bet that recently paid off: Corning just inked a $6 billion deal with Meta.

The boom in fiber optics parallels another of Corning’s big businesses: creating the Gorilla Glass for every iPhone and Apple Watch. Apple recently announced its own $2.5 billion deal, through which all of the tech company’s glass will be manufactured at Corning’s Kentucky plant.

U.S. manufacturing is a key element of Corning’s success; fully half of its production takes place at its headquarters in Corning, New York; in Harrodsburg, Kentucky; or at a network of plants throughout North Carolina. Further, the company “outsources almost nothing,” instead relying on vertical integration and designing required machinery in-house. This stands in stark contrast to the global electronics industry highlighted in ASCM’s The Chain documentary series. The episode details how production is typically outsourced to an intricate web of hundreds of suppliers across dozens of countries. By choosing vertical integration instead, Corning has scaled rapidly and retained key knowledge.

This culture of protecting intellectual capital is proven in several ways. First, when the company pivots to a new form of production or output, Corning reassigns its engineers instead of laying them off. As a result, employees accumulate expertise over decades and across many different projects. Likewise, during the pandemic, the business employed nearly 5,000 more workers than revenue required. Corning chose to offer stock options instead of letting people go. As The Journal states, “Now that demand for fiber is booming, the company needs all of those workers and capacity — and more.”

Lean into strategic planning

Corning’s shift from kitchen cabinets to data centers underscores a vital truth: Business growth is rarely a straight line, and success favors those who master the art of strategic planning. According to ASCM’s latest report, From Reactive to Orchestrated: Your Ascent to Supply Chain Maturity, organizations that prioritize planning maturity significantly outperform their peers. Backed by SCORmark benchmarking data and real-world case studies, the report shows where most supply chains fall short and how focusing on five core planning pillars can unlock measurable ROI. Download the report today and begin working toward true supply chain durability.

Leading Manufacturing Through Change, Data and Talent with Tsubaki Nakashima

Fri, 13 Feb 2026 00:00:00 -0600

Expert Insights on Leading Global Manufacturing Landscape.

Supply chain manufacturing jobs are predicted to climb to 3.8 million by 2033. However, 1.9 million could go unfilled, according to the National Association of Manufacturers. Manufacturing supply chain leaders need plan how to fill these vacant positions while navigating global disruptions, rapid technology advancements and sustainability initiatives.

Nahsay Naeve, president of the Engineered Plastic Components Business Unit at Tsubaki Nakashima, joins The Chain podcast to share her inspiring journey, from global business management to her current role overseeing precision industrial components. This episode offers invaluable perspectives for supply chain professionals looking to advance their careers and organizations aiming to adapt to the ever-changing landscape of manufacturing.

Key takeaways from the episode

Effective manufacturing supply chain leadership is built on diverse experiences and flexible management styles that empower teams to make fast, informed decisions. For our podcast guest, building resilient manufacturing teams of the future means closing the skills gap, improving productivity through technology and making sustainability initiatives part of the core business strategy.

Workforce development through technology in manufacturing supply chain

For Naeve, manufacturing leaders can invest in upskilling and reskilling their workforce by starting with small wins. For instance, automation of manual tasks helps close skills gaps as technology is adopted. And a focus on adopting digital fluency in each team. However, technology investments improve productivity only when paired with clear measurements such as scrap rates and annual productivity, as well as leadership’s openness to revisiting older ideas as tools evolve.

Sustainability as a strategic differentiator

Sustainability is evolving from a compliance requirement to a strategic initiative within the manufacturing supply chain. Naeve outlines three value drivers: regulation, OEM requirements and end-customer demand. Being a first mover or excelling in sustainable practices, including using recyclable and recycled plastics, especially in Europe, creates opportunities for differentiation and added value in the supply chain.

Career advice for manufacturing supply chain professionals

Naeve encourages supply chain professionals to familiarize themselves with digital tools, understand the end-to-end supply chain and develop adaptable mindsets. She also highlights crisis management skills as essential for responding to unpredictable supply chain disruptions. For women entering the industry, mentorship and organizational culture are key factors for success and advancement in leadership roles.

Apply these manufacturing leadership takeaways in your organization

Naeve’s insights point to a practical playbook for manufacturing supply chain leaders: Start building capability with targeted, measurable technology, embed sustainability into core operating decisions to differentiate with customers and regulators, and develop people who can see the end-to-end system and lead through disruption. Prioritizing upskilling and investing in mentorship and adaptable mindsets will help teams close talent gaps while staying competitive in an environment defined by rapid change.

Give your organization a competitive edge and transform your talent ecosystem.

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Leading Through the 2026 Supply Chain Revolution

Mon, 09 Feb 2026 11:00:00 -0600

As the scale and complexity of global trade reach unprecedented heights, supply chain professionals are seeing their roles expand at an astronomical pace. To excel today, you must move beyond the tactical and master a multidimensional set of skills — from agentic AI orchestration to geopolitical risk mitigation.

This transformative climate also demands a shift from supply chain manager to supply chain leader. Organizations are no longer looking for people who can simply "run the business"; they are aggressively building pipelines of leaders who can reinvent it.

Distinguish management from leadership
Every supply chain professional has the potential to guide an organization, but the digital age has widened the gap between daily management and true strategic influence. In a world where AI can handle routine planning and inventory replenishment, the ability to inspire teams and navigate high-stakes ambiguity has become the ultimate competitive advantage.

The ASCM Supply Chain Salary and Career Report reveals proven techniques for cultivating a versatile toolkit for your supply chain career. To thrive in the current landscape, you must bridge the gap between emerging technology and high-level human intuition by following these action items:

Audit your tech stack: Evaluate where cloud computing can further streamline your workflows, as it is now the standard for over half of your peers.
Implement agentic AI: Move beyond basic prompts by integrating AI tools that assist in real-time decision-making and predictive forecasting.
Explore advanced manufacturing: Investigate how robotics or additive manufacturing could reduce lead times or solve specific localized supply shortages.
Sharpen critical thinking: Dedicate time to scenario planning rather than just reacting to disruptions to better navigate 2026's ongoing volatility.
Enhance decision-making: Practice data-backed problem-solving to ensure that your technical proficiency is translating into measurable business results.
Prioritize collaboration: Build cross-functional partnerships across departments to ensure your supply chain strategy aligns with broader organizational goals.
Invest in relationship-building: Strengthen ties with international suppliers and local distributors to ensure priority during high-demand events like the recent salt shortages.

The anatomy of a 2026 supply chain leader
Professional evolution is a conscious and strategic process. According to the latest ASCM research, success in this era requires the ability to architect a resilient vision that skillfully balances traditional cost-efficiency with the modern necessity of just-in-case regionalization. This vision is supported by the orchestration of digital change, where the adoption of agentic AI and molecular-level innovations are used to solve legacy supply chain hurdles that once seemed insurmountable.

Beyond the technology, the modern leader serves as a bridge-builder, moving past transactional vendor management to foster deep, collaborative ecosystem partnerships with global suppliers. By leveraging real-time predictive insights to seize market opportunities at the exact moment of impact, these professionals remain proactive in a volatile landscape. Ultimately, they champion ethical resilience by modeling honorable labor practices and sustainability, ensuring their operations serve both the planet and the organization's long-term health.

Your path forward
To navigate this evolution, the APICS Certified Supply Chain Professional (CSCP) designation provides the essential playbook for mastering the end-to-end global landscape. By covering critical areas from demand forecasting and risk management to the implementation of modern technologies, the CSCP program empowers you to tap the power of your supply networks to enhance collaboration and boost the bottom line. Beyond the strategic advantage, the certification offers tangible professional growth, with CSCP holders earning an average of 31% more than their non-certified peers. Whether you're optimizing internal operations or managing complex forward and reverse logistics, earning this designation proves you have the skills to lead your organization through any disruption.

The transition from managing tasks to leading global networks is the definitive career move for 2026. By combining technical mastery with strategic foresight, you ensure your supply chain organization remains as resilient as it is innovative.

Arctic Blasts and Record Snowfalls Leave Salt Distributors Cold

Fri, 06 Feb 2026 00:00:00 -0600

If you’ve spent the past couple of weeks digging out walkways and parking spots, you’re not alone. With 200 million Americans facing a relentless cycle of ice and snow, the consistent deep freeze has prevented even a hint of a melt. Meanwhile, our greatest defense — rock salt — often travels thousands of miles to get to our roadways, and under the current white-out volatility, even those massive supply chains are struggling to keep up.

In a typical year, New York City imports 900,000 metric tons of salt via the Port of New York and New Jersey. Recent weather has burned through a staggering 369,000 metric tons, underscoring the storms’ sheer intensity. The rock salt used to treat and prevent buildup of ice on New York’s municipal roads comes from Chile, Egypt, Mexico and Peru. Once a ship arrives, mounted cranes drop the salt into a funnel-shaped hopper on the wharf, reports the Port Authority of NY and NJ. Then, “a continuous stream of trucks” moves the salt from the hopper to a giant pile. For the three big salt providers — Morton Salt, Atlantic Salt and Prieto Enterprises — “there’s space to store about half a million tons on site.” From there, 3,000 truckloads per day set out for their final destinations.

Unfortunately, this intricate choreography is now being pushed to its breaking point. When the massive portside stockpiles can’t be replenished as fast as the trucks depart, the strain ripples outward from major hubs to local municipalities struggling to secure their share. With one major storm potentially triggering hundreds of orders, demand can cause a nationwide salt shortage, where sustained low temperatures require road salting for even very low-snowfall events.

Although major metropolitan areas have figured out ways to manage with the amount of salt on hand, numerous smaller towns have been shorted as much as half their salt orders. In much of Connecticut, labor and equipment delays are resulting in serious salt delivery backlogs. Cleveland officials, acknowledging their own shortage, have announced a “plow-more, salt-less plan” that prioritizes main roads, hills, dangerous intersections, and areas near hospitals and schools over residential streets. And in Lansing, Michigan, some de-icing companies have even received emails from their salt suppliers that simply state, “Everybody’s cut off. No more salt.”

Ready for all eventualities

Prepare to lead your organization through the next season of disruption by earning the ASCM Certified in Planning and Inventory Management designation. It’s a proven way to plan with precision, lead a digital transformation and execute the right strategies for your unique supply chain.

Meanwhile, trade the shovels for networking and the salt shortages for strategic breakthroughs at the premier gathering for supply chain leaders. Register now for CHAINge: North America, and look forward to California sunshine and great conversation all year long. After all, if you’re missing the warmth, Long Beach is the place for you!

Use AI for Actionable Insights in Demand Planning

Tue, 03 Feb 2026 00:00:00 -0600

The primary hurdle in scaling AI isn't a lack of processing power, but a lack of contextual integration. While modern algorithms can analyze thousands of variables in seconds, they often operate in a vacuum, unaware of the strategic nuances that human teams manage daily. For instance, an AI-driven forecasting solution can easily generate daily forecasts, detect anomalies and highlight early signs of demand shifts; however, its plans might contradict promotions, regional events or new product launches. Without a governance framework to bridge this gap, the tool becomes an island of automation that generates friction rather than efficiency.

AI alone cannot make decisions; planners must interpret outputs, adjust for new or exceptional events, and coordinate with operations and finance teams to ensure forecasts translate into actionable plans. To bridge the gap between AI-generated numbers to decision-ready insights, implement a framework that balances technical speed with human judgment:

Map decision workflows. Before deploying AI, define who makes what decisions, such as which forecasts trigger inventory commitments, when human overrides are required and how cross-functional teams should be involved in anomaly review.
Focus AI whereit adds the most value. AI performs very well when supporting large SKU portfolios with historical data, detecting early shifts in demand and supporting scenario planning. For items with little history — such as new product launches or experimental promotions — human judgment remains essential. Teams should document assumptions and create a feedback loop to refine future models.
Integrate AI into sales and operations planning, as well as integrated business planning, processes. AI forecasts must align with decision cycles and planning frameworks; meaning, AI outputs should be reviewed in weekly S&OP review meetings and forecasts should be tied to inventory, capacity and financial decisions. It’s also wise to ise AI for scenario simulations rather than exact predictions.
Measure success beyond accuracy. Evaluating results should shift from traditional forecast error to operational impact by tracking service levels during volatility and inventory optimization without emergency shipments. Monitoring the frequency and rationale for human overrides further reveals whether AI is truly enabling smarter decisions rather than just producing cleaner numbers.
Continuously refine AI-human collaboration. Track manual adjustments to identify specific strengths and weaknesses within the AI’s performance. The goal is to reduce reliance on human corrections over time while ensuring models are updated to reflect shifting business conditions.

Integrating AI into these structured workflows transforms supply chain management from a reactive exercise into a proactive strategy. By bridging the gap between automated insights and human expertise, organizations move beyond simple data processing to achieve true operational agility. This governed, human-augmented approach ensures that planning remains grounded in real-world constraints, fostering the cross-functional trust necessary to eliminate waste and align production with actual market demand.

Strategic takeaways

Define authority first: Establish who owns specific decisions before deployment, as AI is only as effective as the human workflow it supports.

Target high-value tasks: Deploy AI where it excels most — specifically in pattern recognition, anomaly detection and rapid scenario generation for high-volume data.

Synchronize planning cycles: Embed AI outputs directly into S&OP and IBP processes to prevent siloed data from conflicting with financial and capacity goals.

Evaluate operational outcomes: Shift focus from narrow accuracy percentages to broader impacts like service reliability, inventory health and the quality of human-led overrides.

Commit to iteration: Constantly monitor the friction and success of AI-human interactions to refine models and build organizational trust. AI in demand planning is not a silver bullet, but a strategic enabler. Organizations that adopt a hybrid, governed approach create more agile, responsive and profitable supply chains.

California Port Leaders Prioritize Long-Term Infrastructure Goals

Fri, 30 Jan 2026 00:00:00 -0600

Strategic planning at the nation’s busiest port complex is evolving from reactive fixes to a long-range outlook focused on digital resilience and geopolitical agility. In my conversation this week with port leaders Dr. Noel Hacegaba and Gene Seroka, we explored how these hubs are becoming predictive nerve centers, capable of weathering both economic cycles and volatile trade lanes. We delved into the structural shifts and technology driving the future of global trade, as well as how ports will — and should — shape this conversation.

“Ports sit at the intersection of trade, geopolitics, climate and technology,” Long Beach CEO Hacegaba explained. “These issues are at the top of everyone's agenda in government, business and industry. Ports have the ability to influence and affect transit time, carrying costs and everything that is vital and paramount to shippers. When disaster strikes, we feel it first.”

This frontline perspective is particularly critical as global trade lanes face unprecedented regulatory mandates. With erratic tariff policy making long-term planning difficult, Los Angeles Executive Director Seroka noted, “You've got to find a way to have a horizon that goes through budget cycles, through economic cycles and certainly through election cycles. Infrastructure projects that we're embarking on … have a horizon of 25 or 30 years.”

Although many supply chain professionals are prioritizing short-term, tactical pivots, it’s critical to balance those choices with the longer lead times required for major infrastructure. "We can't just react to short-term volatility, "Hacegaba agreed. "We've got to plan things out far in advance, get the permits, get the equipment interchange receipts, get the partners to finance the fund."

To learn more about how ports are functioning today, I asked about the structural shift we've seen in recent years from manufacturing entirely in China to China-plus-one and nearshoring. Hacagaba believes everyone is “hedging their bets” by diversifying trade lanes and looking for ways to keep cargo moving in the “fastest, cheapest, most reliable way possible.” He added that some approaches add three days of shipping time on the water, thus putting the organization three days behind schedule. In response, many are tapping rail connections to key markets.

AI plays a role, too. For instance, Seroka's port uses AI for both geospatial traffic mapping and to support digital twins: “We've got naval architects who have to do construction or repair work underneath the water service. If you can cut out the time it takes the scuba divers to go down and look at the pilings underneath, and show it to them digitally in real time, you can get those architects working that much quicker.”

Interestingly, ASCM Editor-in-Chief Elizabeth Rennie recently explored the power of partnering AI and digital twins for our Insights Blog. She writes: “Digital twins and AI make each other stronger. Their complementary strengths unlock new levels of functionality and efficiency. Together, they run simulations with greater speed and volume than previously possible, enhancing scalability and forecasting accuracy to provide users with faster and more accurate analysis that supports better decision-making.”

The future of orchestration in Long Beach

ASCM’s annual conference, CHAINge: North America, heads to Long Beach this September 29-30. Don't miss your opportunity to explore the key issues shaping global supply chains — from talent development to digital transformation to circularity. Plus, many fun networking opportunities will enable you to trade ideas, problem-solve and innovate. Register today to solidify your standing in the next phase of global trade.

Physical AI and the Self-Correcting Supply Chain

Fri, 23 Jan 2026 00:00:00 -0600

As the World Economic Forum concludes its annual meeting in Davos, one thing is clear: AI has saturated the global conversation. From the halls of the Swiss Alps to the front lines of global logistics, the value of this technology lies not in its raw power, but its strategic purpose.

Supply chain professionals must shift their perspective — recognizing that AI is no longer a mere technical utility; rather, it must be a thinking asset. This evolution defines the concept of physical AI: By embedding intelligence into machinery, supply chain assets gain the ability to perceive and adapt to environments that more often than not are, as the WEF describes, “messy, dynamic and imperfect.”

Physical AI can also connect to other networks, learn from human training and refinement, and provide critical insights needed for predictive resilience. In other words, “Instead of reacting to failures, physical AI predicts them,” WEF continues. For example, AI recognizes patterns to help predict when goods should be replenished to prevent empty shelves.

“As global operations face rising volatility, from climate shocks to geopolitical uncertainty, the next competitive differentiator will be systems that not only diagnose issues, but resolve them autonomously,” Forbes explains. “Self-correcting supply chains mark a shift from reactive analytics to proactive adaptation — AI that can detect disruption, adjust parameters, prioritize products or shipments, and reoptimize flows within guardrails defined by human judgment.”

Still, scaling these technologies presents a unique challenge for the modern supply chain leader. During a TIME100 Talks Davos panel, executives from Dow, Ernst & Young and NTT DATA emphasized that, while discovery and productivity gains are enormous, the transition is complex. Strategic professionals will move their teams from being "doers of tasks to directors of systems."

To achieve this, consider the following tips from industry experts:

Invest in high-quality data and strong feedback loops. Establish a data-layer foundation to ensure you have a single source of truth and AI is learning from reality, not noise.

Audit for high-impact use cases by identifying specific operational gaps — such as touchless forecasting or warehouse orchestration — where AI can solve a real problem.

To avoid “pilot purgatory,” where 95% of AI projects fail, train robots to match human speed and strength while upskilling workers to manage their digital teammates.

Crosstrain individuals to understand key topics and goals in different functions. Along the way, build organizationwide trust, so AI decisions are shared and transparent.

Future-ready talent

Any AI initiative must be viewed as a continuous partnership between systems and people. After all, human expertise is the catalyst that turns any technology from a tool into a real asset. Tap ASCM’s Supply Chain Technology Certificate to unlock essential capabilities in AI, as well as analytics, blockchain, additive manufacturing, cybersecurity and more. Whether you’re empowering your team with this innovative credential or pursuing it yourself to become a high-level decision-maker, this is your path to leading the future of supply chain.

A CSCO’s Blueprint for End-to-End Supply Chain Excellence

Tue, 20 Jan 2026 00:00:00 -0600

Today’s CSCOs are at the forefront of driving digital innovation, scaling global operations and managing a seamless thread that connects raw material sourcing to the final mile of customer delivery. To understand how they navigate such complexity, ASCM asked CSCOs to share their top priorities and identify where new initiatives and related support are most needed to build resilient supply chains.

Download the infographic for expert insights from CSCOs.

Top strategic priorities

Two goals emerged as top concerns for modern CSCOs, reflecting a dual-track strategy of structural design and digital enablement:

End-to-end supply chain strategy (80%): Leaders are moving beyond functional optimization. They are redesigning networks to ensure that a decision made in procurement doesn't create a bottleneck in distribution.

Technology and digital transformation (80%): Digitalization is the engine of end-to-end strategy. CSCOs prioritize the integration of real-time data across every node of the chain.

To bridge these strategic goals with the practical realities of the workforce and market stability, CSCOs are also focusing on the following:

Talent development (53%): There is a growing realization that digital supply chains require digital people. Upskilling the workforce to manage AI-driven tools is now a majority priority.

Risk and resilience (47%): While slightly lower in the ranking, resilience remains the safety net that enables the other strategies to function during a crisis.

While technology provides the framework, these priorities ensure that the organization has the skill sets and durability to keep those digital systems running.

Threats to performance

The ambition to innovate is often met with external resistance. Our findings also show that geopolitical instability and trade disruptions remain the single largest threat to performance. The shift from just-in-time to just-in-case is a direct response to these volatile trade lanes. Furthermore, inflation and cost pressures continue to squeeze margins. In an environment where costs are rising, CSCOs are under pressure to prove that digital investments are active drivers of efficiency and cost avoidance.

To address these threats and meet necessary KPIs, CSCOs are leaning heavily on data-driven support systems:

Benchmarking and risk modeling (77%): Data on cost, talent and performance is essential. CSCOs need to know where they stand relative to their peers to justify investments. Similarly, scenario planning allows them to run what-if disruption scenarios before they happen.

AI and technology guidance (69%): With the hype surrounding generative AI, leaders are seeking unbiased guidance on which technologies offer true ROI versus those that are merely distractions.

Research and market trends (54%): These data points offer the foundational knowledge required to navigate complex regional nuances and shifting global demands.
Executive peer insights and networks (38%): Connecting with industry colleagues provides the firsthand experience and shared best practices to validate strategic decisions.

Beyond the analytics

Data is a powerful starting point, but CSCOs need more than just a dashboard: They require actionable frameworks and implementation support to connect, measure and innovate every node of the supply chain. The gap between knowing about a problem and understanding how to fix it is where many digital transformations fail. The most successful organizations are those that can translate high-level strategy into floor-level execution. This requires a standardized way of looking at processes, performance and people.

Ultimately, by bridging the gap between high-level data and ground-level execution, CSCOs can transform their supply chains from reactive cost centers into resilient engines of growth. ASCM stands ready to support this transformation, providing the standardized frameworks and benchmarking tools necessary to help you not just understand where you stand, but how to improve and lead in an era of constant change.

Take the first step with ASCM’s free Supply Chain Maturity Assessment. This SCOR-based assessment provides a high-level view of your maturity across the seven critical SCOR process areas, offering the baseline you need for a true enterprise transformation.

AI and Digital Twins Form a Powerful Partnership

Fri, 16 Jan 2026 00:00:00 -0600

On their own, digital twins are relatively powerful and insightful. But with AI as a sidekick, the advantages are significantly amplified. Before exploring the many possibilities, it's important to understand digital twins. According to the ASCM Supply Chain Dictionary, a digital twin is "an exact virtual replica or model of a real-world process, product or service used to digitally simulate, test, model and monitor it.” In other words, a digital twin models a piece of equipment, a facility or an entire supply chain in order to reveal all kinds of valuable information.

AI speeds digital twin data analysis

AI can quickly analyze the vast amount of data generated by sensors and sources within the digital twin to identify trends, anomalies and potential disruptions in real time. Faster analysis means faster decision-making, intervention and goal achievement. For example, international furniture retailer Ikea leveraged an AI-driven digital twin platform to create digital twins of 37 Ikea locations. In nine months, the company managed to model 42 million square feet of space, including 6,000 pieces of HVAC equipment produced by 10 different manufacturers. In modeling and analyzing the information from 7,000 data points, the company was able to reduce its HVAC central supply system’s energy consumption by 30%, which also yielded millions of dollars in savings. This was made possible by the digital twin’s AI component, which enabled advanced simulations of risks and environmental impacts based on site data.

The high-speed data analysis also can analyze historical data to identify patterns and then predict future risks, such as equipment failures, demand fluctuations or transportation delays. When a disruption does occur, AI can perform root-cause analysis to pinpoint the cause of the problem and facilitate faster resolution as well as better prevention. Going a step further, AI also can translate disparate types of data into data sets the digital twin system can understand, giving the system a more informed ecosystem. For example, AI can translate information from maintenance logs, videos of machine operation, photos of equipment and audio into data. The digital twin can then use this information in combination with other data to provide more realistic and accurate modeling of operations and outcomes.

AI enhances knowledge gained from digital twins

AI brings to the table advanced analytics and decision-making capabilities that allow digital twins to self-optimize and self-configure. For instance, through iterative machine learning, AI can evaluate current sensor data and historical data to decide which scenarios the digital twin needs to run. It also can run different simulation scenarios that reveal previously uncovered insights. As the AI-driven digital twins continue to develop and learn, they could ultimately become cognitive or aware. These intelligent systems could automatically detect anomalies or predict faults and recommend intervention before problems occur. These insights could be used to prevent unplanned equipment downtime or be used in a smart building system to monitor and maintain environmental conditions that support optimal comfort and operating conditions as well as regulate energy use.

Smarter systems yield smarter forecasts too. Researchers in the United Kingdom are applying AI-driven digital twin technology to medical forecasting. After training a digital twin on medical data combined with current health data, the model was able to predict a patient’s next health condition with 88% accuracy when applied to U.S. data. The accuracy was a bit lower at 68% and 76% when applied to two different British data sets, but the researchers already are working to improve the overall forecasting accuracy.

AI makes digital twins easier to use

One of the obstacles of using digital twins is the amount of time it takes to create them. According to McKinsey & Co., creating a digital twin for a highly specialized application, such as vehicle routing or multi-machine production scheduling, can take six months or more of labor, computing and server costs. Large language models, a type of generative AI, can create the code for a digital twin, thus significantly reducing the time and labor to create a digital twin. McKinsey adds that this capability could be used to create a foundational, universal model for digital twins that could be used as a base for developers to create their own digital twins.

When digital twins are easier to build, they can be applied to more industries and use cases. For example, digital twins could become a training ground for college students to help them get real-world experience in environments that can’t be simulated in a classroom experience. Lam Research posits that this would be particularly useful in bridging the skills gap for the semiconductor industry. Universities can’t readily work with the latest nanotechnology or safely work with some of the volatile chemistries used in semiconductor development, but easy-to-access digital twins could be a good bridge to prepare students for working in the field.

A symbiotic relationship

Importantly, it’s not just digital twins and their users who benefit from this relationship. AI learns and improves, as well. Digital twins offer AI large stores of robust, contextualized data that can inform large language models. Furthermore, the digital twin offers AI a safe space to learn. Through what-if scenarios within the digital twin, the AI can fine-tune its skills at predictive modeling, for example. The digital twin can validate generative AI’s outputs to ensure it adheres to any constraints of the system, such as machinery temperature or output rate. This capability still is in development, but it could be an effective way to reduce the errors generative AI has been associated with.

In addition, digital twins support organizations in the implementation and rollout of AI resources. McKinsey & Co. estimates that digital twins reduce the amount of time needed to deploy new AI capabilities by 60% and cut operating expenses by as much as 15%. In line with this, 75% of large enterprises are investing in digital twins to scale AI solutions.

Digital twins and AI make each other stronger. Their complementary strengths unlock new levels of functionality and efficiency. Together, they run simulations with greater speed and volume than previously possible, enhancing scalability and forecasting accuracy to provide users with faster and more accurate analysis that supports better decision-making.

Learn more about digital twins, artificial intelligence and other technologies with the ASCM Supply Chain Technology Certificate. This industry-leading education prepares you to master the latest supply chain technology.

ASCM-CNBC Research Shows the Cost of Tariffs on Supply Chain Jobs

Fri, 16 Jan 2026 00:00:00 -0600

For nearly a year now, tariffs have been causing a strategic paradox for global supply chains. Our industry must build long-term resilience within an environment of total unpredictability — and try to maintain optimism while constantly bracing for severe disruption. ASCM has been following along with our tariff tracker, documenting these trade policies and what they mean for supply chain organizations around the world. Now, brand new research by ASCM and CNBC reveals a stark conclusion: The tariffs have levied a significant toll on corporate stability, workforce growth and broader economic sentiment.

In the study, 32% of supply chain managers report layoffs at their companies, amid a hiring recession that is typified by rising long-term unemployment and anemic job creation. In fact, employers cut more than 1.2 million supply chain jobs in 2025, a 58% increase over the previous year. This also includes a staggering 317% year-over-year increase in job cuts in warehousing — a spike also driven by the desire to automate repetitive tasks with AI and robotics.

Our research shows that much of the downsizing is directly attributed to lack of predictability since the tariff roller coaster began. A significant 65% of ASCM-CNBC survey respondents report at least a 10-15% increase in costs in 2025, which is reshaping budgets, strategy and business viability. An additional 34% of those surveyed say their costs increased by more than 15%.

The White House has promised refunds to businesses for what they’ve spent on tariffs, though the matter is still being reviewed by the Supreme Court. “More than 1,000 businesses, including big names like Costco, Revlon and Goodyear, have already sued the Trump Administration. Companies paid some $133.5 billion in International Emergency Economic Powers Act-based tariffs through December 14,” Forbes reports. However, even if some money is returned, it will never be enough to make up for the time spent on paperwork, costs for customs bonds, deficit in interest-bearing accounts and even interest paid to predatory lenders, CNBC continues. That money is just a “tax dragging down the supply chain.”

As I told the outlet: “Navigating the tariffs is an administrative burden. We’re spending a huge amount of time tracking rule changes, validating codes and trying to find the most effective way to operate in the short term without a long-term plan. ... This isn’t just about resilience and reacting to a court ruling; it’s about having certainty in the U.S. economy and what kind of pricing models we can plan on.”

Upskilling as a sign of loyalty

Beyond the personal toll, workforce reductions also strip supply chains of vital institutional wisdom. As I said to CNBC, you cannot resource or requalify staff overnight; losing specialized knowledge creates a long-term deficit. Fortunately, ASCM supports necessary upskilling and reskilling for individuals and teams with the industry’s best educational resources, including both core certifications and specialized certificates. Get started today, and give your workforce the confidence to navigate the uncertainties ahead with professional development from ASCM.

Navigating Aisles of CPG Uncertainty

Sun, 11 Jan 2026 00:00:00 -0600

The consumer packaged goods (CPG) industry thrives on speed, efficiency and consistent availability. Unfortunately, the journey of a product to the store shelf is fraught with potential disruptions. In a world where consumer demands shift rapidly and supply chains are increasingly complex, robust risk management is a necessity for CPG companies.

CPG pain points

CPG companies face unique challenges that amplify the impact of supply chain disruptions: Perishability creates a ticking clock, where delays result in significant waste and financial loss, demanding precision in logistics and inventory management. Volatile demand, driven by fleeting consumer trends and economic shifts, necessitates agile forecasting and production systems. Stringent regulations around food safety and labeling add further complexity and require meticulous compliance.

While global sourcing can be cost-effective, it exposes CPG to geopolitical risks and trade uncertainties — especially with ongoing tariffs and retaliatory measures. Finally, in the age of social media, consumer sensitivity to ethical sourcing and supply chain transparency can quickly turn any mishap into a reputation-damaging crisis.

How CPG companies can withstand disruptions

To navigate these challenges, CPG professionals must adopt a proactive and comprehensive approach to risk management. Consider the following: First, establishing end-to-end visibility is paramount, beginning with detailed supply chain mapping to understand every tier of the network. Leveraging the internet of things and RFID technologies for real-time tracking of goods and ingredients provides crucial data for informed decision-making. Moreover, investing in advanced analytics tools enables the identification of potential bottlenecks and predictive disruption analysis, allowing for proactive mitigation strategies.

Accurate demand forecasting is also essential. Best-in-class CPG businesses are implementing AI-powered tools that anticipate shifts in consumer preferences. Building flexible production and distribution systems that can quickly adapt to demand fluctuations is another proven strategy. Contingency plans for sudden spikes or drops in demand, along with alternative sourcing strategies, should be developed to ensure continuous supply.

Diversifying the supplier base reduces reliance on single sources, mitigating risks associated with disruptions in specific regions or companies. Conducting thorough supplier risk assessments that focus on financial stability, quality and ethical practices is equally vital. In addition, be sure to foster strong, collaborative relationships with key suppliers, emphasizing open communication and transparency, to strengthen supply chain resilience.

Next, maintaining rigorous regulatory compliance and quality control requires staying abreast of evolving standards and implementing structured processes at every stage. Develop a comprehensive crisis-management plan for product recalls and safety incidents to help ensure swift and effective responses, minimizing damage to brand reputation and consumer trust.

Top CPG firms also prioritize sustainable and ethical practices. This involves responsible sourcing to minimize their environmental footprints and mitigate long-term environmental risks. Ensuring ethical labor practices throughout the supply chain not only aligns with societal values, but also strengthens relationships with consumers who increasingly demand transparency and accountability. Additionally, communicating sustainability and ethical commitments builds brand trust and loyalty.

Embracing digital technologies streamlines operations and enhances visibility; however, it also necessitates robust cybersecurity measures to protect against cyberattacks. Educate employees on best practices and implement secure data-management systems, which is crucial for safeguarding sensitive information and maintaining operational integrity.

In CPG, it’s important to conduct regular risk assessments to identify potential threats, allowing for the development of comprehensive business-continuity plans that address various disruption scenarios. Create a dedicated crisis-management team to enable swift and coordinated responses to unforeseen events, minimizing operational downtime and financial losses.

Finally, fostering an open culture, one in which employees are encouraged to report potential risks and concerns, promotes proactive problem-solving. Leaders must highlight the necessity for transparency and open communication, sharing lessons learned from past disruptions to continuously improve risk-management processes.

Turn risk into opportunity

While risk management focuses on mitigating negative impacts, resilience is about finding opportunities amidst challenges. By proactively addressing potential threats, CPG companies can gain a competitive advantage through greater reliability and responsiveness.

As stated previously, enhancing brand reputation by demonstrating ethical and sustainable practices builds consumer loyalty. These key relationships can be further strengthened with transparency and collaboration to create a foundation for long-term success.

In the fast-paced and ever-changing world of CPG, risk management is not just about avoiding disasters; it's about building a resilient and sustainable future. By implementing these strategies, CPG professionals can navigate the aisles of uncertainty with confidence and ensure the smooth flow of products from production to consumption.

Get started today with ASCM's Supply Chain Resilience Certificate. Enroll in a program that helps your team develop the competencies needed to prepare for potential disruptions.

Editor's note: The article has been updated to reflect recent supply chain topics and trends. The original publish date was February 2025.

Venezuela Oil Infrastructure Recovery Faces Steep Operational Hurdles

Thu, 08 Jan 2026 23:00:00 -0600

Despite the push in recent decades for sustainable solutions to the global energy crisis — whether via wind farms, electric vehicles or even fusion energy — gasoline still powers much of the world. The global hunt for oil is a volatile, zero-sum game that often collapses into regional and political conflicts. The turmoil continued this week with the capture of Nicolás Maduro, president of oil-rich and resource-scarce Venezuela, and President Trump's pledge to run the country and increase oil output.

“With an estimated 303 billion barrels, Venezuela is home to the world's largest proven oil reserves,” reports the BBC. However, the broadcaster notes that “the amount of oil the country actually produces today is tiny by comparison,” largely because former leaders “tightened control over the state-run oil company, leading to an exodus of more experienced staff.” Although Chevron and other Western oil companies are still active in the country, operations have decreased considerably: “In November, Venezuela produced an estimated 860,000 barrels per day… barely a third of what it was 10 years ago and accounting for less than 1% of world oil consumption.”

Restoring production to historical peaks will likely take years and billions of dollars in investment, a risk some companies may be unwilling to take. In fact, ConocoPhillips and ExxonMobil are still seeking billions in compensation from Venezuela after their assets were expropriated in the 2000s. Even if they are willing to return, the operational barriers would be onerous: “Discussions about Venezuela’s potential return to global oil markets often focus on reserves, production targets or price implications.

“From a supply chain perspective, those elements are secondary,” Logistics Viewpoints argues, noting that infrastructure has deteriorated and supplier networks have disappeared. Equally critical is a specialized workforce equipped with skilled labor and institutional knowledge. The energy talent pool in Venezuela has diminished significantly over the years, requiring comprehensive upskilling and recruitment to fill the gaps. Essentially, sustained production depends on restoring continuity across upstream operating inputs, industrial equipment and materials, and physical infrastructure.

But there is some reason for hope. A successful rehabilitation could prove “seismic” for our industry, Supply Chain Digital predicts. “If political transition holds and infrastructure repairs begin, the nation could rapidly re-integrate into global trade flows, reshaping freight routes and refinery operations.”

Stay in the loop

A foreign government takeover may be an outlier, but constant disruption is a fundamental reality for every global supply chain. Keep up with all of the latest supply chain happenings with ASCM’s Supply Chain Signals. The free newsletter provides a consolidated, scannable update on topics and trends that will help you navigate market volatility. Recent editions included tips to outmaneuver unexpected supply chain disruptions, announcements in emerging technology and shifting global regulations, and strategies and tactics for optimizing procurement. Sign up today for a quick, informative read every week.

ASCM's 2026 Trends Shine a Light on Intelligent Transformation

Fri, 02 Jan 2026 00:00:00 -0600

As we embark upon 2026, the global supply chain landscape is reaching a long-awaited inflection point. For the past five years, the industry narrative has been dominated by a frantic race to adapt and recover — a period of permacrisis, where volatility was the only constant. But now, we’re finally moving away from reactive disruption management toward a phase of purposeful, intelligent transformation.

The release of ASCM’s Top 10 Supply Chain Trends in 2026 explores the primary catalysts behind this shift, offering a comprehensive roadmap for the new era. The report also goes beyond mere predictions to provide real-world applications, demonstrating how emerging tools and concepts are evolving from experimental into operational essentials. Furthermore, by delivering industry-specific insights across a wide range of sectors, the research highlights how diverse organizations can navigate global dynamics and adapt supply chain strategy to an increasingly complex landscape.

In a recent ASCM Insights blog article, Editor-in-Chief Elizabeth Rennie digs into the trends, underscoring that the path forward is no longer about just staying afloat. She writes, "Success will not hinge on managing disruption, but embracing digitization and building highly interconnected, resilient networks. It's clear that 2026 is the year when technology moves from the periphery to the very center of organizational health.”

Industry experts are also weighing in on this pivot. Supply Chain Management Review recently analyzed ASCM’s findings, noting that the themes of AI, regionalization and circularity are foundational to the new blueprint for supply chain leadership. According to Editor Brian Straight, supply chain success will rely on prioritizing advanced digitization, diversifying supply networks and securing data. He notes that this reflects a growing consensus: The "wait and see" approach to digital investment has officially been replaced by a mandate for enterprise-wide integration.

Unsurprisingly, at the heart of this transformation is the maturation of AI. While previous years focused on small-scale pilots, AI is now the connective tissue of the modern enterprise. Rennie notes that the power of the tool lies in "synthesizing vast amounts of real-time data — from market trends to external shocks — to drive unprecedented forecast accuracy improvements."

Beyond technology, the research once again confirms that business success is inseparable from talent strategy. As repetitive tasks are handed over to algorithms, the role of the supply chain professional is being redefined around human-machine collaboration. Rennie emphasizes that this shift requires a "cultural transformation toward continuous learning," moving the workforce away from transactional tasks toward strategic oversight and analytical problem-solving.

Prepare for the transformation

ASCM’s Top 10 Supply Chain Trends in 2026 represent a fundamental set of interconnected strategies necessary for competitive success. Embracing them will help ensure your supply chain is a lasting competitive advantage. Download the full report today to master critical challenges and exciting opportunities alike — and solidify your role as a true supply chain leader.

Supply Chain Excellence Brightens the Holiday Season

Fri, 26 Dec 2025 00:00:00 -0600

As we move through these busy final days of 2025, I’ve been thinking about the ultimate supply chain professional: a certain North Pole resident who manages a global, multi-modal distribution network with an astounding zero-day lead time. While he deserves much of the credit, we in the industry know the real magic is in the elves’ shop floor management and the impeccable cold-chain integrity of Dasher, Dancer and the rest of their crew.

In all seriousness, the holiday season is always an inspiring time for our supply chain community. It’s a reminder of the “last mile” that connects our work to families, communities and all kinds of joyous occasions. Reflecting on 2025, I’m struck by how far we’ve come. This year was defined by resilience in action. We didn't just talk about agility; we lived it. There’s no doubt that supply chain professionals made a tangible, positive difference in the lives of people all around the world.

I am particularly moved by the progress and dedication of our supply chain family this year:

Growth: Thousands of you invested in yourselves, pursuing APICS certifications and ASCM certificates to stay ahead of a changing world.

Connection: We gathered — both in person and virtually — to problem-solve and share a vision for a more sustainable future.

Storytelling: We launched "The Chain," our new docuseries that unravels complexities and spotlights the hard work of professionals like you.

Recognition: We introduced a new format for the ASCM Awards of Excellence, allowing us to support organizations, teams and colleagues with the ultimate thank you for their talent and dedication.

Supply chain is the very pulse of global strategy, and it is your dedication and ingenuity that keep that pulse beating. This holiday season, I hope you're able to step away from your monitors and spreadsheets to enjoy some very well-deserved time with loved ones. On behalf of everyone at ASCM, thank you for your hard work, your passion and your friendship.

Is Strategic Precision the New Retail Model?

Fri, 19 Dec 2025 00:00:00 -0600

As ongoing volatility and razor-thin margins force a rethink of traditional retail models, the focus seems to be shifting from expansion to precision. Whether by curating product variety, refining categories or standardizing packaging, The Great Supply Chain Simplification may be upon us.

This isn't just a theoretical shift; a growing wave of headlines suggests a definitive industry trend as numerous major brands pivot toward leaner operations. For example, Bath & Body Works recently announced a major efficiency initiative. The personal care and home fragrance store will begin rationalizing inventory and exiting select product categories such as men’s grooming. This move also serves as a direct response to customers finding the current assortment overwhelming.

Also on the SKU-slashing bandwagon are hardware megastore Lowe’s (with a 15% reduction) and discount chain Dollar General (1,000 products have been cut). Meanwhile, J.M. Smucker is shedding 25%: “This targeted action will improve velocities and deliver margin expansion as we prioritize high-velocity, margin-accretive SKUs that better serve our consumers and drive increased operational efficiencies,” says CEO Mark Smucker.

Interestingly, this drive for precision is also reshaping how the world’s largest brands organize their leadership. PepsiCo recently announced a major organizational restructure designed specifically to unify its food and beverage operations. The company is hoping to bridge the traditional gap between the sales floor and the warehouse. Plus, creating a unified selling structure suggests a move toward more integrated logistics and distribution channels.

Of course, there are other ways to simplify beyond SKUs and leadership charts. Several years ago, fragrance and skin care giant Coty Inc. set out to boost margins by stripping away fixed costs and streamlining procurement. Today, the company credits its success to a strategy that involved centralizing global planning and investing in localized distribution centers. Not only was a fragmented network transformed into a synchronized system, but heightened visibility enabled Coty to position inventory closer to local demand while cutting $700 million in costs between 2021 and 2024. To maintain this precision, the business now uses AI for hyper-granular forecasting at the individual SKU, channel and retailer levels.

Also tapping the power of AI is trendy discount brand Five Below. Recognizing inventory management as a critical business constraint, the brand turned to AI to optimize levels and address overstocking, while ensuring that each location has the right products at the right time. The company is now using proprietary algorithms to forecast sales across millions of SKUs, maximizing inventory turns and avoiding overstocks.

A streamlined path to success

As more companies strip away operational friction, the demand for leaders who can drive transformation is surging. That’s why ASCM created the Certified in Transformation for Supply Chain (CTSC) designation. This program will help you identify key opportunities, select the right frameworks and apply systems thinking to confirm concept alternatives. Plus, earning the CTSC validates your expertise in supply chain strategy and proves your ability to lead a major transformation project.

In an era defined by cutting through the noise, the best way to advance your career is simple: Start your CTSC journey today.

2026 Begins with New Supply Chain Priorities

Mon, 15 Dec 2025 00:00:00 -0600

For five years, the supply chain narrative has been dominated by constant volatility and the race to adapt, recover and survive. But as we look ahead to 2026, the supply chain environment finally seems to be structurally shifting toward a phase of intelligent transformation. On the path forward, success will not hinge on managing disruption, but embracing digitization and building highly interconnected, resilient networks.

To help you navigate this complexity, ASCM has compiled the Top 10 Supply Chain Trends in 2026 — an essential roadmap for maximizing technology, finding exciting new opportunities and building a truly sustainable competitive advantage. We’ve analyzed which trends will have the greatest likelihood and impact, and provided real-world applications and strategies to help you lead the way.

Here’s a sneak peek at the three key strategic clusters and the crucial shifts you need to prepare for now:

Strategic cluster 1: Digital transformation

Digital transformation is the core mandate for 2026, with three interconnected technologies leading the charge: First, AI is the most critical trend, reflecting its immediate influence and transformative potential across all supply chain functions. Whether machine learning, deep learning or generative AI, this tool is a foundational element in core supply chain operations. Its power lies in synthesizing vast amounts of real-time data — from market trends to external shocks — to drive unprecedented forecast accuracy improvements.

The second pillar of digital transformation is automation, which will require expert integration of AI, robotics and autonomous systems. This trend is crucial for creating global networks optimized to meet fluctuating demand and reduce both labor and delivery costs. Note that implementation requires more than just installing new hardware; supply chains must focus on reinventing core business processes to align with automated workflows. Furthermore, it’s crucial to dedicate resources to mitigating the cybersecurity threats that inevitably accompany a highly interconnected, automated infrastructure.

Last is the trend of agility and resilience, which enables supply chain organizations to predict, prepare for and respond to rapid change. Further, these capabilities are now intrinsically linked to digital twin technology — a game-changer for supply chains that enables sophisticated scenario planning in a risk-free virtual environment.

Strategic cluster 2: Macroeconomics and risk mitigation

While digital trends dominate the rankings, the next major cluster addresses the existential threats emanating from the global landscape. Again, these challenges will best be solved with strategic, rather than reactive, structural change. First, geopolitical shifts are creating profound uncertainty, increasing costs and disrupting critical routes. The strategy has evolved beyond a simple “China + 1” to an “Anywhere-but-China" approach, driving a fundamental, capital-intensive rewiring toward regionalized and resilient supply chains.

Next, in 2026, more companies will pursue deep vertical integration to combat structural price volatility and mitigate reliance on concentrated suppliers. This strategic diversification, using nearshoring and decoupling, is creating entirely new manufacturing ecosystems in Africa, Mexico, Vietnam and more.

The last trend in this cluster focuses on cybersecurity. This isn't just an IT problem; every supply chain professional must care about safeguarding the extended network. In 2026, leading organizations will implement continuous vulnerability-detection tools that scan supplier interfaces and enforce multi-factor authentication for all key data exchanges. They will also establish rigorous risk-management programs that include contractors, fourth-party vendors and software providers. This is the only way to guarantee operational continuity.

Strategic cluster 3: People and planet

The trends confirm that financial success and organizational health are inseparable from talent and sustainability. Investing in human capital and ethical operations is now a competitive strategy. The scarcity of skilled labor and the urgent demand for digital literacy requires a cultural transformation toward continuous learning. The new imperative is human-machine collaboration, shifting the workforce away from repetitive tasks toward strategic oversight and analytical problem-solving.

Driven by stringent regulations and evolving consumer demands, the trend of climate and circularity is mandatory. This involves embedding design-for-disassembly and prioritizing recycled materials in R&D. The focus is on physical resilience to counter the severe impacts of extreme weather and transitioning business models away from disposable goods to high-value niches in professional repair and remanufacturing — a critical pivot for cost control and future supply security, especially in the automotive sector.

Lasty, ethical sourcing and visibility are necessary to meet the rising need for supply chain transparency. Stakeholders will continue to demand more responsible business practices, requiring real-time tracking of labor conditions, compliance and material provenance to safeguard brand reputation.

Your 2026 journey starts here

The ASCM Top 10 Supply Chain Trends for 2026 are a fundamental set of interconnected strategies necessary for competitive success. The full report provides real-world industry spotlights, including high-tech, health care, retail and many more. It also shares specific, strategic steps to help you prepare for every trend.

Lead the transformation in 2026 and beyond. Download the full Top 10 Supply Chain Trends Report to master critical challenges, enhance your skillset and solidify your role as a supply chain leader.

ASCM Board Dialogue Forges Strong Future

Fri, 12 Dec 2025 00:00:00 -0600

I’ve just returned from our board meeting and retreat, and I’m energized by the clarity, candor and commitment that came through in every discussion. While this weekly message typically focuses on current events, I decided to share some internal insights because the sheer pace of change in supply chain demands conversations like these. ASCM is navigating a profound transformation, driven by accelerating technology, shifting geopolitics, new business models, and evolving expectations from our members and the wider supply chain community. We view this as an exciting opportunity, and I would like to tell you more about it.

Throughout its 70-year history, ASCM has continually evolved to meet the needs of the global supply chain community. Over the past decade in particular, the organization has delivered steady progress — 5% compound annual growth rate — while expanding the value we provide to practitioners, leaders and organizations worldwide. That performance is gratifying, but it’s not a finish line. (To learn more about how we maintain our financial strength and use our growth rate for strategic investments, I encourage you to read my recent post on LinkedIn.)

During the meeting, our board also spent considerable time probing the big questions that will shape ASCM’s next chapter:

Industry trends and technology: How we help professionals master new tools — from AI-driven planning to digitized risk sensing — while maintaining the human judgment and ethics that make supply chains resilient.

Geopolitical volatility: How we guide organizations to design for uncertainty, diversify responsibly and build shock absorbers across networks and talent pipelines.

Changing business models: How associations evolve their products, services and revenue mix to meet today’s expectations — speed, personalization, proof of outcomes — without losing the trust that comes from independent standards and communities.
Member and community needs: How we simplify experiences, recognize different career stages and create learning journeys that are relevant to real work.

Additionally, we examined an ASAE study of changing business models for associations, and the findings underscore why transformation is essential:

63% of associations expect non-dues revenue to increase.

Half of associations report no growth or a decline in membership — a sobering trend.

Only 11% describe their value proposition as “very compelling.”

These insights confirm what we’ve long believed: Members seek clear outcomes, flexible engagement and communities that feel relevant to their day-to-day reality. Our job is to meet those needs with quality, credibility and convenience. We’ll keep learning from the broader association field while tailoring approaches that fit the unique dynamics of supply chain management.

Why this matters now

Supply chains have become front-page news for good reason: They’re strategic levers for competitiveness and societal well-being. When we elevate skills, standards and collaboration, we help organizations deliver products responsibly, respond to crises effectively and create durable opportunities for people everywhere. That work isn’t abstract; it shows up in better planning, smarter sourcing, safer operations and more resilient careers.

I’m grateful to our board, volunteers, chapter leaders, partners and staff for the thoughtful dialogue and the work ahead. Transformation isn’t a single project; it’s a mindset. If you have ideas or feedback on how ASCM can serve you better, please share them. And I encourage you to get involved in one of ASCM’s many volunteer opportunities. Together, we’ll build the capabilities and the community that the future demands.

8 KPIs for an Efficient Warehouse

Tue, 09 Dec 2025 00:00:00 -0600

KPIs are critical to the success of any warehouse. They set critical benchmarks and help identify opportunities for improvement — especially those that have a direct impact on overall cost and customer satisfaction. KPIs often are unique to a particular operation, and not all metrics apply in all warehouses. But there are some standards that should be tracked, which include the following:

KPI 1: Fulfillment. Fulfillment begins with order placement and ends in the dispatch of goods to the customer. There are several metrics to be assessed within the order fulfillment process:

Order fill rate measures the percentage of the order that has been filled. A typically acceptable order fill rate is 97-98%. Anything below 94% is probably due to inefficiencies in warehouse operations and replenishment processes.
Order fulfillment timeliness evaluates order fulfillment time. In today’s market, this can be anywhere from 2-3 days down to a matter of hours from the time of order placement until dispatch from the warehouse.
Picks per hour is the primary outbound metric that analyzes the performance and efficiency of the picking team. An average picker is expected to pick between 120 and 175 pieces or cases per hour, with best-in-class pickers achieving more than 250 picks per hour. Applying advanced technology such as voice picking can drive pick rates 30% higher.
On-time in full (OTIF) identifies how well delivery goals are reached in terms of receiving the full order by the desired date. Even if all the above KPIs are achieved as best in class, if the goods are not delivered on time, it will negatively affect business. Typical OTIF shipments should be at least 98-99%.

KPI 2: Inventory accuracy. The accuracy of physical inventory should correspond with that listed in the data, but realistically there’s often a disparity between the two in any large distribution center. A high rate of inventory inaccuracy can result in unexpected back orders; dissatisfied customers; and, ultimately, higher overall costs. Inventory accuracy can be improved by conducting regular checks against the database and using cycle counting as a means of continually validating database records.

KPI 3: Overall throughput. Warehouse throughput refers to the number of units that are processed and moved on a daily basis. To calculate throughput rate, track the movement of goods through the warehouse for a given period of time. For example, to measure how many orders are processed within an eight-hour shift, track the number of orders received in that amount of time and how long it takes each product to move from picking to packaging and labeling. For instance, if a warehouse processes 400 orders in eight hours, workers are completing an average of 50 orders per hour.

KPI 4: Replenishment. Replenishment is the movement of inventory from a central or reserve storage location to the primary storage bins for further movement downstream. This metric is very important for warehouses that handle multiple products in large volumes, especially e-commerce environments. The replenishment metric monitors the methods used to carry out this movement and the efficiency of the processes involved. With effective replenishment techniques, companies can avoid overstock and dead stock, circumvent shortages, ensure on-time deliveries, rotate products properly, and maintain adequate safety stock.

KPI 5: Order accuracy. The mission of any warehouse operation is to ensure that the customer gets the goods they ordered within the time frame they want it. A key part of OTIF, order accuracy is one of the most important metrics that a warehouse must measure daily. Best-in-class warehouse operations target order accuracy at 99.5-99.9%.

KPI 6: Inventory turns. Stock turnover ratio is used to identify how often and how soon a stock item is received, ordered, processed and delivered, within a given time period. This is an important measure of a company’s inventory health and order processes. Inventory turns can be tracked in a warehouse management system, which gives users the ability to treat different types of inventory differently. For example, when inventory cycle counting, people can count the fast movers more often than the slow movers, applying labor efforts where they can have the most impact, as opposed to treating all inventory items with the same management processes.

KPI 7: Dead stock. Dead stock is inventory that is not moving because of a lack of demand due to being damaged, expired or unsellable. It sits in the warehouse occupying space and eating up capacity. The best practice here is to track dead stock, then create sales incentives to move these goods out.

KPI 8: Supplier KPIs. Measuring supplier KPIs is critical to developing best-in-class procurement. It can foster better communication, increase spend and order visibility, improve process efficiencies, identify cost-savings opportunities, and more. Supplier KPI measurements to consider include reliability, performance, compliance and customer service.

Learn more about the most critical supply chain KPIs with ASCM's ASCM's Supply Chain Warehousing Certificate.

Editor's note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was October 26, 2022.

Changing Chip Priorities Fracture Supply Chains

Fri, 05 Dec 2025 00:00:00 -0600

When it comes to microchips, global supply chains are quickly splitting into "haves" and "have-nots.” Consumer electronics manufacturers are being starved of essential components, as chipmakers aggressively shift capacity toward higher-profit products. At the same time, tech giants including Amazon and Microsoft are actively stockpiling advanced memory chips for their own AI ambitions, which further limits supplies available for things like smartphones and PCs. The result is an immediate, painful crunch for anyone managing an electronics bill of materials.

Indeed, focusing on high-margin AI-related products over traditional consumer chips makes more economic sense for producers. Laptops may only contain 16GB of internal processing space, while Google’s latest AI chip needs 192GB of high-bandwidth memory. Basically, bigger AI chips mean bigger paydays.

Prices for these essential components have already more than doubled this year. Reuters reports that this instability is likely to escalate into a global supply crisis that will increase already high inflation and pose a severe macroeconomic risk. Chinese smartphone makers Realme and Xiaomi warn they may have to increase prices 20-30%, and Taiwanese laptop manufacturer ASUS says it has about four months of inventory before it will have to seriously consider raising prices. Micron, the only U.S.-based memory supplier, is going to completely stop selling chips for consumer products, focusing instead on “meeting demand for high-powered artificial intelligence chips,” per CNBC.

The tight supply of high-bandwidth memory (HBM) is also exacerbated by a specialized production process. According to Financial Times analysis, the manufacturing yield rate for advanced HBM is substantially lower than that for conventional dynamic random-access memory. In fact, The Wall Street Journal podcast recently featured a major analyst stating that the lead time for the most-cutting-edge AI chips has stretched to more than a year. This extended lead time all but guarantees that the volatility will persist deep into 2026, forcing long-term contract renegotiation and planning challenges.

The AI push continues

Despite supply constraints, AI remains crucial for every future-looking supply chain. It’s the number-one trend for supply chains for 2026, according to ASCM’s brand-new Top 10 Supply Chain Trends Report, our annual insight into the most important innovations, strategies and global topics shaping the year ahead.

“AI is a transformative force for supply chains, essential for competitive differentiation and core to efficiency and innovation,” the report states. The research also confirms that the technology supercharges precision and speed across core functions by minimizing human error, accelerating disruption response, lowering operational costs, and boosting transparency and service levels.

The full report unlocks crucial real-world supply chain applications and industry-specific spotlights, providing the practical framework you need to immediately prepare for all 10 trends. Download it today to discover how these powerful shifts will redefine your supply chain and maximize exciting strategic opportunities in the coming year.

Gratitude for the Enduring Strength of Supply Chain

Fri, 28 Nov 2025 00:00:00 -0600

We are all deeply aware that we are living through a period of profound global complexity; volatility; and, too often, hardship. In many corners of the world, and in many facets of our lives, we feel the weight of these times, and it is right to acknowledge it openly. For our global supply chain community, recognizing this reality also enables us to confirm the profound significance of our work.

The past few years have been a relentless stress test. Yet through it all, the supply chain profession — represented by your expertise, professional endurance and unparalleled adaptability — has proven itself to be the critical backbone of global commerce. So, as we in the United States celebrate Thanksgiving, I’d like to offer a moment of gratitude for what it really takes to succeed in this environment.

Supply chain professionals turn chaos into continuity, managing complexity, navigating impossible decisions and solving seemingly intractable problems. Supply chains are not merely a business function; they are fundamental drivers of human well-being and stability. By driving operational efficiencies, we help keep lights on and factories running. In optimizing inventory, we improve the availability of essential medicine. Through enhancing sustainable sourcing practices, we work toward a better environmental future. Supply chain professionals are the architects of a functioning world.

Looking ahead, we will keep tackling the increasing demands placed upon our networks. And along the way, know that everyone in ASCM’s network is your partner on this journey. The enduring value of our organization is the strength of its global community — its shared knowledge, mentorship and support. When one member finds a solution, we all become stronger. When the community innovates, we collectively heighten industry standards. Thank you to all ASCM members for advancing our profession every day.

After this moment of pause and reflection, let’s all return to the challenges ahead with renewed focus and a deep commitment to creating the next era of supply chain excellence. The momentum and stability we build today will define the resilience of tomorrow.

What Supply Chain Leaders Need to Know About Upskilling and Reskilling

Tue, 25 Nov 2025 00:00:00 -0600

The rise of AI isn’t about replacing jobs — it’s about making work processes smarter, faster and more effective. As supply chains become increasingly digital, organizations need resilient, highly skilled teams to keep pace. Yet, a looming global talent shortage threatens to leave $8.5 trillion in revenue untapped by 2030 if the issue is not proactively addressed.

To build the workforce of tomorrow, supply chain leaders must look beyond traditional hiring. While recruiting externally is one option, investing in strategic upskilling and reskilling programs can help organizations thrive well into the next decade. Here’s why these initiatives are essential for supply chain success and how to secure leadership support.

What do upskilling and reskilling mean for supply chains?

Upskilling and reskilling are about building a sustainable talent pipeline that addresses critical skill gaps. Upskilling involves helping employees develop new capabilities to excel in their current roles, while reskilling prepares them to transition into entirely new positions within the company.

Today’s supply chain professionals need both technical and leadership skills. Technical expertise might include working with AI, mastering data analytics, or managing automation and risk. Leadership abilities — such as problem-solving, critical thinking and emotional intelligence — are equally important. The goal is to create a workforce that can collaborate effectively with both technology and people, fostering flexibility and resilience through ongoing learning.

Why prioritize upskilling and reskilling over hiring?

Some organizations try to close the skills gap by hiring new talent. In fact, a recent survey found that two-thirds of C-suite executives plan to “buy” the skills needed for AI’s rise. However, hiring alone won’t keep pace with the rapid changes in the supply chain landscape.

Here’s why upskilling and reskilling are critical:

Cost efficiency and ROI: Training current employees is often more cost-effective than hiring new ones. The Society for Human Resource Management reports that the average cost per hire is nearly $4,700, and some estimates put the total cost at up to four times the position’s salary.

Boosted performance: Providing employees with up-to-date skills helps them work more creatively and effectively, driving productivity.

Stronger retention and engagement: Investing in employee development signals a commitment to their future, which significantly increases loyalty and engagement.

Future-proofing: As technology and industry standards evolve, so must team skills. Continuous learning builds a resilient workforce.

Competitive edge: Companies that prioritize learning and development are better equipped to innovate and adapt. When employees feel unsupported, they’re more likely to leave for competitors.

Empower growth through learning

Upskilling and reskilling are vital for supply chain organizations aiming for long-term growth and competitiveness. By prioritizing employee development, individual capabilities are enhanced, and the business is positioned to meet future challenges head-on.

Embrace the future of work by giving your team the tools they need. Explore ASCM’s workforce development programs to build high-performing teams ready to meet any challenge. Download the shareable Why Your Supply Chain Team Needs Upskilling PDF.

Editor's note: This article has been updated to reflect recent trends and topics in supply chain. The original publish date was September 2024.

Dwindling Inventories Mean Steeper Prices for Consumers

Fri, 21 Nov 2025 00:00:00 -0600

Chat with anyone at the hardware store, grocery or pharmacy these days, and relentless price increases are bound to be a part of the conversation. The cost of virtually everything seems to be skyrocketing, and it’s unfortunately about to get worse. New data shows that, after months of strategic frontloading, critical warehouse inventories are rapidly depleting. The result? Consumers are about to shoulder an even greater tax burden as companies begin passing on the full cost of import duties.

The sweeping and unpredictable global tariffs have caused imports to drop 5.1% — putting them roughly in line with 2023 figures. The data, reflecting less than one month under the new tariffs, clearly illustrates how the sharp rise in trade taxes has "scrambled life for international business," as The New York Times reports. Meanwhile, U.S. exports also fell by $500 million, as the rest of the world bought fewer American goods.

Facing so much uncertainty, U.S. firms had clamped down on purchases of critical goods, including machinery, industrial supplies, pharmaceutical ingredients and others. This deliberate reduction in procurement followed months of stockpiling to beat the tariff deadlines, but now that inventory is running out, and the industry's ability to buffer import duties has reached its limit.

Goldman Sachs economists estimate that U.S. businesses had been absorbing a net 51% of tariff costs, while the American people were shouldering 37%, according to Fox Business. But the report goes on to say that consumers will pay 55% by the end of this year, while 22% will fall on businesses, 18% on foreign exporters and 5% on potential tariff evasion. In addition, the data shows that tariffs have pushed inflation nearly half a percentage point higher so far in 2025, and the trend is expected to continue in the months ahead.

Meanwhile, the U.S. trade deficit shrunk nearly 24% in one month. This drop might appear to accomplish one of President Trump’s main goals. However, economists caution that the steep fall is misleading, as it largely reflects extreme volatility caused by previous rushing of imports. In fact, the total U.S. goods and services deficit was still up a hefty 25% year-to-date through August, compared with 2024, demonstrating that tariffs have not dramatically reduced America’s propensity to import more than it sells abroad, per The Wall Street Journal.

Build resilience in a time of uncertainty

The implications are clear: The next phase of tariff-driven cost escalation is here, and it’s bringing a sustained period of financial pressure. Supply chain leaders must accelerate diversification of sourcing, expand visibility into multi-tier supplier networks and adopt more risk-balanced inventory models. This is also the time to reassess pricing strategies, negotiate collaboratively with suppliers and invest in predictive analytics to model cost exposure.

Workforce capabilities will play a decisive role. Supply chain teams need stronger skills in risk management, scenario planning and supplier collaboration to navigate this period effectively. Look to ASCM’s Training Solutions for customized education in multiple formats to fit your unique needs. Every program delivers practical skills your team can apply immediately to protect your network in this era of escalating global uncertainty.

Harness AI to Solve the Carbon Challenge

Fri, 14 Nov 2025 00:00:00 -0600

As global carbon emissions from manufacturing and energy production are projected to surge to an alarming 38.1 billion tons this year — a full percentage point higher than the world emitted in 2024 — supply chain leaders must accelerate the pursuit of powerful solutions. The time for incremental moves is over, with AI now positioned as the transformative technology for addressing this sustainability imperative.

The New York Times reports this week that the burning of oil, gas and coal are the biggest contributors to human-caused climate change, with the largest portion of a company's carbon footprint being Scope 3 emissions — those generated upstream and downstream in the network. Unfortunately, because they’re indirect, they’re notoriously difficult to capture and analyze.

“Measuring and managing these emissions means engaging with hundreds of supply chain partners, each with different data formats and methods of carbon footprint accounting,” explains Fast Company. That’s where AI comes in, collecting and merging data from numerous disparate sources. Importantly, the data can also clarify whether a particular activity is worth the environmental tradeoff, making carbon efficiency a critical factor in business strategy.

Another key element of the technology-sustainability relationship is the network-based software platform, providing end-to-end visibility and enabling companies to choose their partners and products based on data. “This approach enables smarter decisions on everything from raw material sourcing to supplier and distribution partner selection, reducing value-chain energy and waste,” Fast Company notes.

This strategic integration of technology is not merely theoretical; many supply chain organizations are recognized as global champions of circular supply chain excellence, actively using these very concepts to drive measurable, real-world results. For instance, ASCM corporate member and former ASCM Award of Excellence winner HP has incorporated more than 4 billion pounds of reused, recycled and renewable materials in its products and packaging since 2019. And it has reached 43% circularity for both products and packaging, per Supply Chain Digital.

As another example, Schneider Electric taps machine learning and AI-driven maintenance to improve productivity and reduce resource consumption. Its motto, “use better, use longer, use again,” further underscores its goal of achieving 50% circularity by the end of this year.

And Swedish furniture giant IKEA sustains a buyback program, purchasing used furniture from customers and reselling it at a discount. By 2030, the company aims to achieve an average circular fulfilment score of 90%, with at least half of its products scoring 100%.

Tools at your fingertips

Don't guess where your supply chain stands on sustainability. To ensure your organization is truly meeting the circular moment, access the following ASCM resources today.

First, check out these recent articles from the ASCM Insights Blog:

Then, begin your Supply Chain Sustainability Maturity Assessment — a free tool that enables the evaluation of a network’s performance across economic, environmental and ethical dimensions. With that knowledge in hand, you can next enroll in our course on Building a Sustainable Supply Chain for clear, proven steps to apply sustainability concepts at your organization.

Finally, look to the ASCM Enterprise Standards for Sustainability to confirm supplier selection and quality, identify gaps for continuous improvement, and validate or update your supply chain strategy. These resources will empower you to build operational excellence, drive tangible results and compete effectively while helping achieve a more sustainable future for all.

A Dual-Focus Strategy for Effective Supply Chain Transformation

Mon, 10 Nov 2025 00:00:00 -0600

Companies spend billions annually on high-tech supply chain upgrades — cloud enterprise resource planning (ERP), robotics, AI and more. Though the potential results are often transformative, many projects fail before you can get there. Frequently, this is because the necessary human element is missing, leaving employees feeling disconnected from the change.

The truth is that technology adoption is never just about the tool. Success requires aligning two forces: the structured discipline of enterprise architecture and the human side of change management. When these come together, technology shifts from an expensive frustration to a true competitive edge.

Why technology alone isn’t enough

When people are excluded from the adoption process, resistance grows quietly. New systems disrupt daily routines and eliminate long-standing practices. Soon employees revert to old habits: Warehouse teams return to Excel, planners ignore algorithms, and managers cling to outdated reports. The obstacle isn't the system itself, but a lack of trust, engagement and effective communication.

On the other hand, even motivated employees will falter if faced with disconnected systems, duplicate data and fragile integrations. Without foundational structure, enthusiasm quickly disappears. Here, enterprise architecture is the solution: It connects technology directly to business strategy, clarifies process-to-tool dependencies and avoids creating isolated systems that eventually break down.

Achieving the right balance requires a dual-lens approach. Effective focus emerges only when structure (the architecture lens) and people (the change-management lens) are viewed simultaneously. By integrating both, the complete picture comes into clear resolution:

The architecture lens: This perspective defines the organization's ultimate goal or direction, designs work processes, establishes data models, and ensures the technical and operational robustness of the system.

The change-management lens: This perspective translates the new structure into a compelling story people can understand and embrace. It focuses on creating effective training and communications, as well as celebrating small victories to build confidence and sustained belief.

When they work together, adoption moves beyond a one-time event and becomes an ongoing, living process.

Case study: Balancing structure and people

The power of this balance was demonstrated firsthand with a midsized manufacturer in Latin America that was transitioning from an aging ERP system to a modern cloud platform. The success of the migration relied on executing the dual approach effectively. The technical effort involved mapping end-to-end processes, building a unified data model and defining clear integration standards with critical logistics partners. This created the robust technical foundation. The human effort focused on the workforce by training "super-users" to become internal champions, constantly gathering employee feedback and communicating platform benefits that were immediately felt in their daily work routines.

The results of this integrated effort were tangible and significant. Order cycles that previously took an entire day were reduced to mere hours. Inventory visibility transformed from educated guesswork to near real-time accuracy. Finance teams were freed from the tedious, manual reconciliation of data. As a result, adoption rates exceeded initial expectations, unauthorized workarounds disappeared, and on-time deliveries improved by double digits. For the first time, leadership could draw a clear connection between IT investment and concrete business performance.

Dual-lens implementation strategies

Successful implementation requires supply chain leaders to map the human impact before configuring systems to ensure design supports users. Simultaneously, build an architecture roadmap to prevent silos, ensuring technology investments fit into a cohesive vision. Keep enterprise architecture light: Start with the high-level vision, then proceed in small, manageable steps that allow for quick learning and adaptation.

Leaders must also actively plan for obstacles including budget constraints, legacy systems and internal skills gaps. Look beyond the initial go-live by proactively planning for continuous upgrades and improvements to keep the system relevant. To generate buy-in, empower internal champions across functions to drive adoption from within. Finally, quickly build momentum through early wins.

The mandate for organizational transformation

Too often, technology adoption in supply chains is treated as just another IT project. But here’s the catch: It’s never only about the technology; it's an organizational transformation. Success is not measured by the number of systems installed, but by whether people embrace them and if those systems connect into a durable structure that makes sense.

When enterprise architecture and change management move together, technology stops being another failed pilot and becomes a driver of resilience, agility and competitiveness that continues growing long after go-live.

Build the foundation for successful digital transformation with ASCM's Technology Certificate to learn how to integrate structure, people and technology for real-world resilience.

Resilience Is the New Efficiency

Fri, 07 Nov 2025 00:00:00 -0600

The traditional supply chain playbook, which prized efficiency above all else, is now obsolete. We are quickly moving into an era where resilience is the new efficiency — and a fundamental requirement for survival.

From tariff chaos to unpredictable shipping to extreme weather, global supply chain disruptions jumped nearly 40% last year. “Together, these crises revealed a hard truth: Global supply chains are both the backbone of daily life and among its most fragile systems,” Fast Company states. “Disruption isn’t an anomaly but a recurring feature of the global economy.”

The article argues that the only way to address upheaval is to view resilience as an essential competitive advantage. It notes that companies with diversified supply chains prove to be stronger and more sustainable than those focused on efficiency. Successful organizations also have leaders who prioritize integrating advanced technology with a fundamental focus on the human element and company culture. This makes it easier to adapt to volatility and long-term challenges.

These are key topics explored in ASCM’s new docuseries, “The Chain: How the World Works,” now streaming on Prime Video. Over six episodes, we shed light on how the global supply chains shape the products and systems consumers use every day. The parallels noted in Fast Company’s revised supply chain playbook and in the docuseries are enlightening:

1. Systems must bend without breaking. In the episode centered around communications and the devices we carry, viewers follow the journeys of the high-value, sensitive components integral to producing smartphones. This supply chain requires inherent resilience through vertical integration and diversified sourcing. With hundreds of components produced in dozens of countries, tech companies rely on layers upon layers of suppliers.

2. The future is high-tech and human-centered. Fast Company notes that top companies invest in both innovative tech and workforce training, ensuring that they have the right talent for evolving supply chains. In The Chain episode about Apparel, the series considers the fast fashion industry — specifically, how the 15 million items of second-hand clothes sent to Ghana every week are dealt with. This process depends entirely on the expertise of people to sort, repair and sell items, demonstrating a critical human link in the circular economy.

3. There is hidden complexity in “simple” products. For example, medical oxygen, discussed in the episode on Health, must be kept at extremely low temperatures during shipment, necessitating specialized storage and shipping containers. Unfortunately, these stringent requirements mean that a shortage of oxygen persists in low-income countries, despite increased investment since the pandemic.

4. Organizations must build systems for certainty and adaptation, not just cost-cutting. The article talks about the need for supply chain leaders to plan decades ahead, rather than recalibrating strategy quarterly based on short-term earnings. Likewise, the Sports episode explores the supply chain for artificial turf, a requirement for any stadium without adequate sun exposure. The plastic-based product is manufactured in the United States, but the sand and gravel underneath come from across the globe, adding significant planning complexity and the potential to incur much higher costs.

Intrigued? Check out the full series on Amazon Prime today. You'll discover fascinating innovations and meet many dedicated people who are helping supply chains adapt to a world in flux.

Unpredictable Markets Haunt Seasonal Supply Chains

Fri, 31 Oct 2025 00:00:00 -0500

As the U.S. government shutdown continues over failed budget talks, it’s also intensifying the costs of already pricey everyday goods. And as for Halloween, the effects on seasonal products are causing quite a scare.

Many of the issues begin at ports and borders. Forbes reports that the layoff of thousands of Customs and Border Protection support staff is severely slowing documentation and inspections. This bottleneck has an immediate impact on transit times and is forcing many retailers to risk stockouts or resort to expensive, less sustainable shipping methods.

According to a recent consumer survey by the National Retail Foundation, Halloween spending is expected to reach a record $13.1 billion this year, a 13% increase from last year. That makes sense, Forbes reasons, because 90% of Halloween-themed costumes and decorations have “at least one component made overseas, most commonly in China.” As a result, “retailers must navigate complex supply chains and potential delays to meet the sudden surge in demand for trending items.” Compounded with increased costs from tariffs, it’s no wonder that prices for Halloween items are frightening.

Meanwhile, candy purchases are predicted to hit $3.9 billion, with a 100-piece bag of assorted Halloween treats costing about $16.39 — up $7.20 over the past five years. Inclement weather in West Africa is a major cause of the drastic increase. The nation produces 70% of the world’s cocoa and has been experiencing acute drought and tree disease. Worse yet, most of the chocolate sold for Halloween was produced when cocoa was trading at a monstrous $10,000 per metric ton, versus the standard $2,000 to $3,000.

Candy producers are responding by reformulating existing recipes and adding more non-chocolate items to their confections. One Hershey's strategy is its new Jumbo Reese’s Cup, which maximizes the use of cheaper peanut butter to reduce the chocolate-to-filling ratio. Similarly, Nestlé has launched a KitKat called Ghost Toast with a green marshmallow coating instead of the traditional milk chocolate. And Mondelez International's U.S. Confectionery President Chantal Butler told the Los Angeles Times that gummy candies are now the priority in the American market. Limited-time offerings, such as Halloween-themed Sour Patch Kids, "contribute significantly to the demand we see this time of year," she added.

When supply chains go bump in the night

Ghastly price surges are haunting many companies’ bottom lines, but you don't have to let yourself be spooked. Ghost the competition with ASCM’s world-class education, starting with our Nightmare on Supply Chain Street webinar. You'll gain practical strategies for meaningful sustainability improvements. Then, look to ASCM's certificates for industry-leading education in everything from cultivating strong relationships to implementing blockchain to synchronizing planning. Get started today; each credential is a professional treat!

Ports and Shipbuilders Reel from Tariffs and Project Cuts

Fri, 24 Oct 2025 00:00:00 -0500

The past few years have been a roller coaster for ports around the world, following dockworker strikes, pandemic-level congestion, global unrest and natural disasters. Compounding this volatility is President Trump’s keen focus on protectionist tariffs and blocking global shipping decarbonization fees. These policy shifts are further disrupting established trade routes; raising compliance costs; and may lead to consolidation, placing severe pressure on both ports and domestic shipbuilders.

Despite compelling reasons to invest in alternative sources of energy, the current administration is doubling down on efforts to cancel green projects. These include a 118,000-acre solar facility in Nevada, which “would have been one of the world’s largest photovoltaic power plants,” according to Bloomberg News; and a $5 billion Revolution Wind project off the coast of Rhode Island that was “set to provide enough power for 350,000 homes.” It was 80% complete before the stop-work order forced a pause that's costing “millions of dollars a week” and rampant job uncertainty, per The Wall Street Journal.

These projects have dried up as “orders for new offshore wind service vessels — designed to carry workers and turbines offshore or to lay undersea cable — have also disappeared,” notes Reuters. The impacts equal $679 million, including the cancelation of Department of Transportation financing in support of offshore wind, with a $34 million grant for a facility in Salem, Massachusetts, “expected to generate $75 million in tax revenue over 20 years and create 800 jobs.”

The falling demand for shipping caused Maersk to cancel a $475 million contract for turbine installation at the Empire Wind project off the New York coast. As a result, shipbuilder Seatrium threatened legal action, as it was left with a nearly built vessel but no guaranteed work.

Port fees on Chinese-made vessels, scheduled to go into effect next week, could intensify the pain. “The fees are a bid by the Trump administration to counter China’s dominant position in freight ship manufacturing and spur a moribund U.S. shipbuilding industry,” reports CNBC. “U.S. port fees for most Chinese-linked vessels are broken down into two tranches: one for vessels owned or operated by a Chinese entity, and one for Chinese-built vessels.” Operators will be charged $18-50 per net ton of the vessel’s capacity, depending on the tranche.

China is a growing manufacturing hub for freight vessels, but even non-Chinese-built vessels may be subject to the increased fees, as Western ship owners and freight carriers often use Chinese-backed financial firms “as an alternative to traditional bank loans and to diversify their debt and equity,” CNBC adds. Chinese involvement in the shipping industry totals about $100 billion in assets, or 15% of the global ship finance market.

Gateway to resilience

This period of extreme pressure and uncertainty demands a new standard of supply chain excellence, stability and innovative leadership. It is against this backdrop that the 2026 ASCM Awards of Excellence take on special significance. Fittingly, the prestigious ceremony will take place in Long Beach, California — the home of one of the nation's most high-stakes seaports.

The awards recognize forward-thinking supply chain leaders and organizations committed to peak levels of achievement through the application of the SCOR Digital Standard. Categories celebrate excellence in performance, sustainability, future-ready skills enablement and more. Submissions are free and open, so enter or nominate someone today. And be sure to mark the date for CHAINge: North America 2026, September 29-30. Together, we'll honor a new era of supply chain advancement in Long Beach!

Five Supply Chain Tools for the Hyper-Global Era

Thu, 23 Oct 2025 11:00:00 -0500

The global landscape has entered a complex new era, characterized by growing political fragmentation and heightened geopolitical risk alongside unprecedented digital connectivity and the rapid adoption of AI. This evolving environment presents significant and multifaceted risks that demand proactive planning and navigation by supply chain managers, making resilience imperative for organizational survival and growth.

Build global supply chain resilience

Because of their end-to-end responsibility, supply chain managers are uniquely positioned to help their companies adapt and thrive in this new environment. There are five key risk-management tools to deploy:

1. Scenario planning. We live in a VUCA (volatile, uncertain, changing and ambiguous) world. Keys to successful scenario planning are maintaining a strong position in the core business, placing reasonable bets and establishing a repeatable process to consistently refresh, stress test and identify new scenarios. This proactive approach enables supply chains to anticipate and prepare for a wide range of future disruptions, bolstering their ability to withstand shocks and informing investments in alternative sourcing.

2. Regionalization and multishoring. Supply chain risk caused by geopolitical turbulence, shifting trade trends and climate instability can be greatly reduced by establishing redundant regional networks. Supply chain professionals can become much more resilient by planning smaller, flexible operations closer to customers. This necessitates the development of local ecosystems of suppliers and business partners. Keys to success include investing in local talent, developing a clear plan for social awareness and inclusion, and implementing appropriate technology to reduce physical assets and allow customization of products and services. Regionalization reduces reliance on distant, potentially vulnerable global links, creating more stable and responsive regional supply chains.

3. Hyper-digitization and AI. Big data and the internet of things (IOT) create tremendous opportunities to increase supply chain velocity and create new forms of customer value. The use of machine learning and control tower platforms enables faster, end-to-end decision-making to compete locally while managing globally. Supply chain professionals must develop a clear digital strategy, which links all partners and provides flexibility to respond to market needs. This strategy can include AI-powered predictive forecasting, digital twins, blockchain for traceability and the use of dynamic sourcing models. Hyper-digitization provides enhanced visibility, predictive capabilities and agile response mechanisms, enabling supply chains to react swiftly and effectively to disruptions and optimize scarce inventory.

4. Government advocacy. Governmental and international laws affect networks both operationally and financially. Government advocacy is primarily educating on behalf of customers, employees and shareholders to inform on issues important for your company; and building relationships to strengthen your company reputation and establish a climate of trust. Crucially, this now involves proactively navigating complex environmental, social and governance regulations and compliance mandates. It’s important to build the voice of your employees and stakeholders to tell the story of your company before key legislative and regulatory decisions are made. Proactive government advocacy ensures that regulatory environments support, rather than hinder, supply chain flexibility and stability in times of crisis.

5. Global diversity and inclusion. Diverse teams generate greater innovation and better resilience results. Global diversity is the variety of skills, training, experiences, perspectives and cultural backgrounds in a company. Supply chain leaders must be champions for global diversity and inclusion by increasing flexibility in the workplace; decreasing unconscious bias through education and awareness; and intentionally pursuing diversity and inclusion in recruitment, leader development and training, and cross-functional training practices to address the widening digital skills gap. Diverse teams bring a wider range of perspectives and problem-solving approaches, enhancing a supply chain's adaptive capacity and ability to innovate under pressure.

Resilience amid globalization

Achieving supply chain resilience in this complex global era demands the effective deployment of these five critical tools. By proactively leveraging scenario planning, regionalization, hyper-digitization, government advocacy and global diversity, leaders can fundamentally strengthen their networks. This integrated approach reduces political and market risks, unlocks growth opportunities, and enables companies to truly adapt and thrive amidst globalization's complexities.

Master critical global supply chain risk-management strategies with ASCM's Resilience Certificate program. Elevate your expertise and lead your company through tomorrow's challenges.

Editor's note: The information in this blog has been updated to reflect current research and insights. The original publication date was November 2017.

Automotive Supply Chains Stall Under Financial Scrutiny

Fri, 17 Oct 2025 00:00:00 -0500

After The Great Recession in 2008, companies and governments across the globe were forced to reckon with critical system breakdowns that led to widespread bankruptcies, foreclosures and job loss. Unfortunately, it seems that not everyone learned the lessons of the global economic failures.

This week in the news, the financial collapses of a major parts supplier and a subprime auto lender are revealing critical fault lines in the automotive supply chain. Global supplier First Brands Group filed for bankruptcy after a period of “severe distress,” reports Financial Content. The company “marked a swift and alarming deterioration of its financial health” when it revealed it held more than $10 billion in liabilities.

Simultaneously, Tricolor Holdings, a subprime auto lender, declared bankruptcy after double-pledging collateral — essentially “using the same loan portfolios to secure multiple lines of credit with different banks without their mutual knowledge,” the article explains. This unethical practice leaves all parties exposed, underscores significant systemic vulnerability and recalls the flawed governance practices that precipitated the 2008 crisis.

Financial institutions imperiled by Tricolor's fraudulent and deceptive activities include Barclays Plc, Fifth Third Bancorp and JPMorgan Chase. “Investors and analysts are now assessing the fallout for the individual firms exposed as well as for the broader market,” Reuters reports. Furthermore, credit standards are expected to tighten across the industry, resulting in higher borrowing costs for consumers and a potential contraction in used car sales.

Meanwhile, a recent fire at a Novelis aluminum plant in Oswego, New York, could create more automotive supply shocks and escalate prices for specific materials. Ford is already cutting production in response, per the The Wall Street Journal, moving up downtime that was previously planned for later in the year. These disruptions follow other financial issues for the company: “Ford is already facing $2 billion in costs related to President Trump’s tariff policies and $5 billion in losses by its electric-vehicle unit this year,” Reuters states.

To compensate, “automakers and Tier 1 suppliers will likely accelerate efforts to diversify their supply chains,” Financial Content predicts, reducing reliance on single-source components and exploring “increased vertical integration to gain greater control over critical materials and parts.”

Collaboration in times of crisis

Prioritizing transparency and ethical business practices are central focuses of ASCM’s new documentary series, The Chain, which investigates how networks can be improved to better handle both current and future pressures. In automotive, one of the most significant of these is the electric vehicle revolution. As supply chain expert Dr. Doug Thomas notes in the “Transport” episode, demand for EVs is growing rapidly and will continue to do so, requiring automotive companies to pivot resource allocation toward high-volume production while investing in workforce training to effectively manage advanced electric architectures.

Indeed, people are every company’s most valuable assets. With ASCM’s Supplier Relationship Management Certificate, your teams can develop the knowledge to transform supplier relationships into true competitive advantages by evaluating key benefits and risks, enhancing organizational efficiency, and advancing performance throughout the supply chain. And for more essential insights, be sure to watch "Transport" — and all six episodes of our exciting documentary series. Check them out on Prime Video today!

AI Needs People to Deliver Supply Chain Success

Fri, 10 Oct 2025 00:00:00 -0500

Our global supply chain community is being tested by severe pressures, from ongoing geopolitical challenges and raw material shortages to disruptive tariffs and now the U.S. government shutdown. While these crises demand immediate attention, the deeper issue underlying them all is the persistent talent gap. Interestingly, this week's news highlights a consensus among experts that overcoming these hurdles hinges on redefining how humans and AI integrate within the modern workforce.

AI has widespread implications for supply chain, including autonomous last-mile delivery; augmented reality for more efficient picking and packing; data discovery, collection and processing ; and smarter process automation, ASCM Editor-in-Chief Elizabeth Rennie writes in a recent blog post: “AI is about making better decisions faster by combining significantly more inputs and signals than humans can process,” she notes. “It can adapt in near-real-time to changing conditions and develop new knowledge by processing more data and revealing hidden correlations.”

Of course, AI is not foolproof. As Infoworld reports, “Your biggest risk in AI isn’t prompt injection or data poisoning; it’s people. ... If your organization can’t field enough staff who know how to apply AI to your actual business, you will spend a lot of money on tech that will take you absolutely nowhere.”

The article cites booms in cloud technology and big data, in which companies scrambled to adopt the latest tools and hire experts without first considering how existing employees could be upskilled. The same mistakes are already happening with AI, an industry so new that there simply aren’t enough experts to fill the necessary roles.

Likewise, a Microsoft study found that 75% of knowledge workers were using AI on the job, yet only 39% were actually trained to do so by their employers. However, two-thirds of executives say they won't hire someone without AI skills. “That’s a recipe for shadow AI, uneven results and mounting risk,” Infoworld cautions. “The durable advantage isn’t a specific model; it’s a workforce that knows when AI helps, how to wire it into the business, and how to keep it safe and measurable over time.”

The technology is advancing quickly, particularly with the rise of agentic AI, which functions autonomously to make decisions and execute complex, multi-step tasks. As executives from Deloitte Services note, agentic AI automatically monitors vast amounts of data, generating insights that elevate information quality for decision-makers, with people serving as the final layer of expertise and judgment.

As I recently told Supply Chain Management Review, supply chain success demands investing equally in technology and talent. AI handles scale and complexity, while humans provide essential reasoning and ethical oversight. “The organizations that are much further ahead do not look at training as episodic,” I stressed. “Technology with knowledgeable, capable employees is the winning formula.”

A credential that’s the right fit for everyone

While AI is the current leading technology, it won't be the last, making ongoing workforce development critical for supply chains. The best method for boosting your team’s skillset and elevating career potential is ASCM’s Supply Chain Technology Certificate. Learn to automate supply chain processes using predictive analytics, AI and robotics; master demand planning technologies; protect your supply chain with effective cybersecurity; and much more. Get started today.

Government Gridlock Triggers Supply Chain Challenges

Fri, 03 Oct 2025 00:00:00 -0500

For the second time this year, the U.S. government has shut down, following another failure by Congress to pass a federal budget. This latest political gridlock is set to furlough hundreds of thousands of federal employees and force many others to work without pay. However, the ripple effects will be felt far beyond Washington and are likely to create significant disruption across America's supply chains.

First, air travel is about to get more difficult. While air traffic controllers and Transportation Security Administration (TSA) employees are considered essential and must report to work, NPR notes that some called out sick during past shutdowns when forced to work without pay. And as Logistics Viewpoints reports, the 2018-19 shutdown saw TSA staff shortages lead to longer lines and delays, affecting both passenger and cargo transport.

Transportation on land will also face significant challenges. Truckers can continue hauling freight as usual, but permitting, compliance reviews and background checks for drivers are paused, which will delay the hiring and training of new truckers indefinitely. This of course worsens the nation’s persistent driver shortage.

Railroads will continue to run, but border crossings between the United States and Mexico may be strained, with fewer officers and Customs and Border Protection workers. Inspections and paperwork processing for shipments will be hindered, potentially leading to backlogs at key entry points.

Meanwhile, slowdowns at ports will lead to longer wait times, a shortage of chassis and containers, and higher last-mile costs, notes Supply Chain Digital. Plus, distributed networks become more difficult to schedule, raising friction and decreasing Americans’ trust in the reliability of its hardworking logistics systems. During the last shutdown, dwell times at the Port of Los Angeles-Long Beach rose 15-20%, putting shipments of perishables at particular risk.

All of this comes on the heels of yet another round of tariff announcements, which are expected to worsen an already struggling manufacturing industry. The timing is especially difficult, as this coincides with Manufacturing Day 2025 — a nationwide initiative that aims to inspire interest in the industry while highlighting the potential of modern manufacturing careers. Ultimately, these compounded disruptions highlight a critical vulnerability within the sector, proving a profound need for a more strategic approach.

A plan for our uncertain future

Supply chain interruptions must be expected and prepared for. This begins with a strong supply chain strategy. ASCM’s revolutionary Certified in Transformation for Supply Chain (CTSC) program will help you and your team build critical skills in systems thinking, digital fluency and analytical methods for all types of supply chains. You'll learn to identify risks and opportunities, as well as the right frameworks, models and approaches to effect transformation. Sign up today, and know that when the next disruption hits, you’ll be ready.

OEE Quantifies Throughput for Realistic Scheduling

Mon, 29 Sep 2025 18:00:00 -0500

Every successful production schedule starts with a single, powerful metric: overall equipment effectiveness (OEE). For supply chain professionals, mastering OEE isn't just important — it's the key to unlocking your company's true manufacturing capacity. By measuring what a machine can produce, OEE empowers you to create smart, viable schedules that align with what's actually possible on the factory floor.

What is OEE?

According to the ASCM Supply Chain Dictionary, OEE is the measurement of the effectiveness of a company’s equipment based on the product of its availability, performance and production quality. Fleshing that out a bit, it’s a gold-standard metric that helps manufacturers understand finite capacity by recording and learning from losses in these three key areas.

To calculate OEE, you first must break down machine availability, performance and production quality. Then, by multiplying these factors together, you get the OEE score, which is expressed as a percentage.

Availability captures all downtime losses, including breakdown and preventive maintenance, minor stops, and time spent in setup or changeover. It’s calculated as actual operating time divided by planned production time. For instance, a packaging line might experience downtime due to an unexpected equipment failure or a planned two-hour changeover for a new product, which reduce its actual operating time.

Begin by figuring out actual operating time by subtracting downtime losses from the planned operating time:

Actual Operating Time = Planned Operating Time – Downtime Losses

Now, you can calculate availability:

Availability = Actual Operating Time ÷ Planned Production Time

Next, performance captures loss in productivity when equipment must be run at less than the throughput rate. For example, chemical batches can take longer to heat up or react if residue has built up on vessel walls, thus impeding heat transfer. Similarly, rotating machinery, paper winding equipment or plastic film processing equipment might run at slower speeds if bearings are worn.

Performance is calculated as follows:

Performance = Actual Throughouput ÷ Rated Throughput

Finally, quality captures the loss in equipment productivity when an out-of-specification product is made, including material that must be scrapped or reworked to be acceptable, as well as yield losses during startup or when coming back from a product changeover. A bottling company may need to rework bottles that were improperly labelled; a batch of machined metal components could be out of tolerance and must be scrapped; or an electronic circuit board fails a final test due to a soldering defect, which requires it to be reworked.

Following is how to calculate quality:

Quality = Quantity of First-Grade Material ÷ Total Quantity Produced

Now that you have availability, performance and quality, OEE is then calculated as follows:

OEE = Availability × Performance × Quality

So, if you have the following results:

Availability = 93.75%
Performance = 80%
Quality = 95%

Then, OEE = 0.9375 x 0.80 x 0.95 = 0.7125

This means your operation is running at 71.25% of its full potential.

Note that OEE can be measured manually, with operators recording unplanned downtime and causes, time lost doing changeovers, equipment slowdowns required by poorly performing equipment, and defects and scrap. However, there are also automatic performance-monitoring systems, which are connected to the programmable logic controllers controlling the line equipment to track flow issues electronically. The best of these also do an effective job of analyzing the measurement results and presenting them on electronic dashboards.

The benefits of measuring OEE

By identifying the three core components of OEE — availability, performance and quality — you can gain a clear, data-driven understanding of your equipment's true capabilities in order to create more realistic and achievable schedules and avoid costly over-promising. Instead of relying on guesswork, OEE provides the numbers needed to create schedules that align with what your equipment can truly produce, leading to higher throughput.

OEE also serves as a guide for continuous improvement efforts. By pinpointing exactly where your losses are occurring — whether it's due to unexpected downtime, minor slowdowns or quality defects — OEE tells you where to focus your resources and improvement initiatives.

A robust OEE tracking system is also a cornerstone of successful total productive maintenance, which the ASCM Supply Chain Dictionary defines as preventive maintenance, plus continuing efforts to adapt, modify and refine equipment to increase flexibility; reduce materials handling; and promote continuous flows. Traditionally, there has been a view that reliability and availability could be increased by increasing the maintenance budget. TPM breaks that paradigm by enabling reliability and availability to be raised without budget increases. In fact, TPM frequently reduces overall maintenance cost, even while increasing equipment uptime.

Because operators are now doing all routine maintenance, fewer mechanics may be needed. With less frequent breakdowns, fewer repair parts are consumed. OEE is one of the best measures of how effective your TPM programs are, and detailed OEE measurements tell you where to focus improvement efforts as a component of TPM initiatives.

Nonstandard OEE metrics

Although there are clear standards on what losses should be included in the OEE metric and how to calculate it, many plants don’t follow the standard. There are several possible reasons for this: a lack of understanding of what should be included, the process being perceived as too difficult, a deliberate attempt to hide problems, or a strategic decision to emphasize factors considered most important for improvement.

The first two reasons — a lack of understanding and perceived difficulty — can often be overcome with better education on the value of OEE as a driver of productivity. The third is the least excusable and requires a change in corporate culture. The message from leadership must be clear: OEE is not a metric to be used for punishment; it is a tool to understand where and how an operation can improve. Using a different formula to emphasize specific factors can be appropriate, as long as it isn’t done simply to hide embarrassing data, and the included factors are truly where the operation most needs to improve. Also, everyone involved must understand what is actually being measured.

Another common mistake is multi-plant companies using a different version of OEE for each plant. This is often done because plants want to look better when compared to their sister plants. Not only is this a poor practice, but it's also unfair, as different plants may have different generations of equipment or more difficult product mixes.

Beyond the metric

OEE can be a very useful metric to drive improvements in operating performance, which is the ultimate goal of TPM. It does this by highlighting the various wastes that impede smooth flow and require additional inventories and can therefore drive lean improvement. But it must be done with full understanding of what is being measured and how to interpret the results. And maximizing OEE must be a team effort that involves all qualified employees in maintenance activities. Only then will it provide a realistic view of true capacity, leading to significantly improved schedules.

Climate Week Spotlights the Need for Supply Chain Action

Fri, 26 Sep 2025 00:00:00 -0500

As another blistering summer draws to a close, wildfires continue to burn across vast landscapes and hurricane season is well underway. For supply chain professionals across the globe, these climate crises present a unique challenge and an urgent opportunity.

In fact, 2025 has already seen a particularly high number of major storms. For example, Hong Kong typically experiences about six typhoons annually, but this week’s deadly Typhoon Ragasa marks the ninth so far this year. Johnny Chan, an atmospheric scientist at the Asia-Pacific Typhoon Collaborative Research Centre, tells CNN that climate change is making storms of this scale more common and more powerful: “Because of global warming, you will have more moisture in the atmosphere, and the water temperature is also high. Therefore ... once the storm develops, it has more energy.”

These extreme-weather events and countless others make the case for prioritizing climate action more vital than ever. This week, speakers at Climate Week NYC urged world leaders to translate promises into tangible steps forward. Many noted that the clean energy boom is rapidly accelerating, but its benefits are not equally shared, per Reuters. Plus, the current political landscape has shifted, with a renewed focus on fossil fuels and a less supportive stance toward global climate initiatives.

Without unified global action — in particular, the United States’s divergence from a leadership position — climate goals will become much more difficult to reach. President Heine of the Marshall Islands tells The New York Times, “If the world doesn't rapidly act to reduce emissions,” her country will disappear by 2050. Former Vice President Al Gore says that Earth is “fast approaching a series of potentially catastrophic tipping points.”

Thankfully, there's some good news, too: The ratification of the High Seas Treaty is a significant milestone for ocean conservation. The treaty establishes legally binding rules to “conserve and sustainably use marine biodiversity, share benefits from marine genetic resources more fairly, create protected areas, and strengthen scientific cooperation and capacity building,” explains UN News. Marine pollution is an existential problem: In 2021, more than 17 million metric tons of trash ravaged our oceans; and levels are expected to double or even triple by 2040.

Engaging supply chain professionals at every level

Collaborative research from ASCM and Gartner has shown involving employees in sustainability initiatives enhances both business results and supply chain resilience. With this in mind, ASCM offers a comprehensive suite of industry-leading education to help you make an impact.

For individuals and teams, start with the Building a Sustainable Supply Chain Course. This instructor-led program provides the tools and knowledge needed to operate effectively under the triple bottom line of people, profit and the planet. Explore circular supply chains and how to significantly reduce your carbon footprint, identify key projects to address supply chain sustainability gaps, and understand UN Global Compact guidelines and Sustainable Development Goals (SDGs).

As a signatory of the UN Global Compact, ASCM supports and advocates for the 17 SDGs adopted by businesses and nations worldwide. To help your organization reach these sustainability goals at a holistic business level, look to the open-access ASCM Enterprise Standards for Sustainability. The standards are mapped directly to the SDGs, providing a clear roadmap for a lasting culture of social responsibility and supply chain excellence.

Get started today, and join the essential movement toward a better world through supply chain.

Calculate Inventory with Precision — Even Amid Variability

Sun, 21 Sep 2025 00:00:00 -0500

Editor’s note: This article is a continuation of “Better Planning and Scheduling with the Right Cycle Stock Levels.” The previous article described the role of cycle stock and how to determine appropriate levels. Now, this article focuses on the important role of safety stock.

When it comes to inventory management, safety stock helps fill the gap when regular stock is insufficient. According to the ASCM Supply Chain Dictionary, safety stock is inventory that is carried to protect against forecast errors, as well as fluctuations in demand. This type of stock, also known as buffer stock or reserve stock, is intended to reduce the frequency of stockouts and, in turn, enable companies to provide better customer service.

Of course, it’s essential to calculate the right amount of safety stock so there’s enough to cover all situations without overwhelming the storage area or straining capital budget. Some inventory managers use rules of thumb to govern safety stock amounts, such as the guideline that safety stock levels should equal 10-20% of cycle stock or two weeks of coverage. However, finding the correct safety stock level is actually a bit more nuanced because it depends on supply and demand variability.

Accounting for variability

Calculating a safety stock level in the face of variable customer demand requires some basic statistical knowledge. Begin with Figure 1. This is a histogram — a plot showing the number of cycles at which each demand range occurs. In this case, the histogram plots demand for rolls of a specific grade of paper made on a paper-forming machine throughout 52 weeks. Actual demand was very close to the average —130 rolls per weekly production cycle — for 12 weeks of the year, when the actual demand was 125-135 rolls. Then, actual demand was 135-145 rolls for eight weeks and 145-155 rolls for five weeks.

Because actual demand extends higher above average, the number of weeks that actual demand was within that range decreases. There is a similar pattern on the other side of the average: Demand was 115-125 rolls for eight weeks and 105-115 rolls for five weeks. This bell-shaped curve is typical of many demand patterns.

Figure 1: Histogram of weekly paper demand over 52 weeks

Some products will have little variability and thus a very narrow histogram. Others will have higher variability and a wider histogram. The width of the curve and the underlying variability can be characterized by a statistical property called standard deviation, which is symbolized by sigma (σ). Understanding sigma can help with calculating how much safety stock is needed to provide various levels of protection against demand variability.

In this example, if the company does not have any safety stock, and only 130 rolls of cycle stock, there will be enough stock to satisfy demand during only half the cycles in the year. The company will face stockouts in the other half of the cycles.

Statistics teach that, if a company carries extra stock equal to 1 sigma, that will be enough to cover demand for 84% of the cycles. Sigma is 28 rolls in this example, so if the company carries 28 rolls of safety stock in addition to the 130 rolls of cycle stock, that should be sufficient to prevent stockouts during 44 of the 52 weeks. If safety stock equals 2 sigma, that should cover 98% of the cycles.

A company's ideal safety stock level is determined by its tolerance for stockouts. For instance, if a business aims to avoid stockouts in 98% of its order cycles, its cycle service level (CSL) goal is 98%. This translates to a specific number of standard deviations, known as the Z-factor, which is used to calculate the necessary safety stock. In this 98% CSL example, the corresponding Z-factor is approximately 2. Z-factor, also referred to as the service-level factor, directly correlates to the desired CSL and is crucial for finding the right safety stock to meet that target.

The general equation for safety stock to cover demand variability is:

Here, safety stock is the extra inventory to protect against stockouts. Z is the Z-score (service level factor) representing the number of standard deviations for a desired service level. And σD is the standard deviation of demand during the lead time. It measures the variability or volatility of demand during the period it takes to replenish inventory. A higher σD indicates greater demand variability, requiring more safety stock.

Figure 2 shows the relationship between Z-factor and service level. The relationship is highly nonlinear: Higher service-level values — or a lower potential for stockouts — require disproportionally higher safety stock levels. Statistically, a 100% service level is impossible. Typical service-level goals are in the 90%-98% range.

Good inventory management practice suggests that Z should be set independently for groups of products based on strategic importance, profit margin, dollar volume or some other criteria. This will result in more safety stock for those stock keeping units that are more valuable to the business and less safety stock for the others.

Figure 2: The relationship between service factor and service level

Watch the time units

The previous equation assumes that the standard deviation of demand is calculated from a dataset in which the demand periods are equal to the lead time or production cycle length. If not, an adjustment must be made to the standard deviation value to statistically estimate what the standard deviation would be if calculated based on periods equal to the total lead time.

As an example, if the standard deviation of demand is calculated from weekly demand data and the lead time is two weeks, then the standard deviation of demand calculated from a data set covering two-week periods is the weekly standard deviation times the square root of the ratio of the time units, or

Performance cycle (PC) is a term used to denote total lead time. For procuring raw materials, it includes the time taken to decide what to order, communicate the order to the supplier, manufacture or process the materials, deliver them, and place them in inventory. Inside a manufacturing facility, the PC includes the time spent deciding what to produce, manufacturing the material, releasing the material to the downstream inventory and returning to the next cycle. If a customer allows for a delivery lead time that is greater than the time needed to deliver the order, the remaining customer lead time can be subtracted from the PC. In addition, the PC can be considered the time at risk, such as the amount of time between the point when someone determines how much to order or produce and the point when the next determination is made and realized.

T1 is the time increment used to calculate the standard deviation of demand (σD). It’s used to represent the time increments from which the standard deviation was calculated — one-week increments in our example — and PC for the total lead time or performance cycle length. This is the equation:

Working from a forecast

If cycle stock has been calculated from historical demand, then the variance used in the safety stock calculation should be based on past demand variation. If forecasts are used to set cycle stock, then the factor requiring protection is the forecast error. Standard deviation of forecast error would replace standard deviation of past demand in the safety stock formula, becomes:

Note that it’s critical that the same time units — whether days, weeks or something else — are used for all variables. If there is bias in the forecast, the forecasting process must be improved to reduce and then eliminate the bias. Forecast bias will result in underestimating or overestimating the amount of needed cycle stock.

The PC/T1 factor is a statistical adjustment to approximate the standard deviation of demand throughout the time period of the performance cycle and is just an approximation. It gives reasonable results in cases when the performance cycle is greater than the data collection period. However, it can give very poor results going in the other direction — where PC is less than T1 — especially when the time parameters are small, such as when going from weeks to days. If PC is much less than T1, it’s useful to try to measure demand variability or forecast error on a more frequent basis to reduce T1 to a frequency closer to PC. Ideally, PC equals T1 so that no adjustment is needed.

Seasonal switches

If seasonality is a significant cause of demand variability, cycle stock should be periodically adjusted to reflect the forecast demand during the various high and low periods. If seasonality is not recognized and is instead treated as normal demand variability, a company could end up having a very high level of safety stock while being unable to provide enough material to cover demand in the peak season.

Lead time variability

If lead time variability, as opposed to demand variability or forecast error, is of concern, safety stock should be calculated with this equation:

The average demand term (D Average) is included in the equation to convert the standard deviation of lead time, which is expressed in time units, into production in volume units, such as cases, gallons, pounds or rolls. This equation does not need an adjustment for PC.

Combining variability

If both demand variability and lead time variability are present, the safety stock required to protect against each factor can be combined statistically, which results in a lower total safety stock than the sum of the two individual calculations. If demand variability and lead time variability are independent — meaning that they are caused by different influences — and they both are reasonably normally distributed, the combined safety stock equation is as follows:

Here, if the two variabilities are independent, it’s very unlikely that demand extremes will occur at the same time as very long lead times. Note that the demand elements are all squared, similar to the equation for the hypotenuse (C) of a right triangle with sides A and B:

If demand variability and lead time variability are not statistically independent, safety stock is equal to the combination of the equations for demand variability and lead time variability:

Alternate approaches to safety stock

Occasionally, a calculation can result in safety stock recommendations that are more than businesses can afford to carry. For these situations, here are some alternate approaches.

Perhaps an expediting process is designed to prevent a stockout when safety stock is insufficient to cover all random variation. For example, if the goal is a 98% cycle service level (CSL), safety stock can be reduced by about 38% — to a Z-factor of 1.28 rather than 2.05. This would require the company to opt for a 90% CSL coupled with a contingency plan that prevents stockouts in the other 8% of cycles. However, the contingency plan must be planned and agreed upon in advance. It is unacceptable to ignore this step in the hopes that something can be figured out when the time comes.

This practice is especially effective when working with very expensive products, which are costly to carry in inventory. In one specific example involving an expensive but relatively lightweight product, total supply chain cost was reduced significantly by carrying small amounts of safety stock in overseas warehouses and then relying on air freight to cover demand peaks. The cost of air freighting a small percentage of the total demand was minimal compared with the cost of carrying large safety stocks of this highly valuable material on an ongoing basis.

Another alternative is to consider if a make-to-order (MTO) approach is possible. If lead times allow it, MTO completely eliminates the need for any safety stock — or cycle stock, for that matter. If lead time commitments will not allow for full MTO, finish-to-order (FTO) can enable a company to locate the safety stock where it is generally far less differentiated. Then, demand variability will be much less, on a relative basis, and safety stock requirements will be lower than they would be with finished product inventory. Also, customers will sometimes be willing to accept longer lead times for highly sporadic purchases, making FTO or MTO more of a possibility.

Satisfy corporate goals

Although meeting a certain CSL is useful, business leaders often are more concerned about the percentage of total volume ordered that is available to satisfy customer demand. This is known as fill rate, which is often considered to be a better measure of inventory performance. While CSL is a sign of the frequency of stockouts without regard to the total size, fill rate is a measure of inventory performance on a volumetric basis.

With stable demand patterns and supply behavior — that is, low standard deviations of demand and lead time — fill rate will generally be higher than CSL. Although stockouts will occur, their effect will be small because of the low supply and demand variability. The opposite also is true: If there is high variability in demand or lead time, the magnitude of any stockout can be quite high despite carrying safety stock. In this case, the fill rate actually is less than CSL.

Empower supply chains

For supply chain professionals, safety stock is a strategic tool, not a simple buffer. Accurate calculation, considering demand and lead time variability, is crucial. Whether using statistical methods, contingency plans, or make-to-order approaches, effective safety stock management ensures resilience, customer satisfaction and business success in a volatile global landscape.

It's essential to adapt and grow within the supply chain industry. Earning ASCM’s CPIM designation not only equips you with the knowledge to enhance supply chain processes but also empowers you to navigate complexities and drive operational excellence.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was February 3, 2021.

Mars Creates a Sweeter Supply Chain

Fri, 19 Sep 2025 00:00:00 -0500

As consumers, it’s often challenging to wade through the marketing hype and know if a company sincerely reflects our values. Whether ensuring ethical business practices, fair labor and safe workplaces, or sustainability initiatives, it’s heartening to find out that many organizations are truly committed to a better world.

That’s the promise made by Mars, best known for its M&Ms and Snickers candies. “I believe in the power of business to have a positive impact in society,” says new CEO Poul Weihrauch. “Profit and purpose should go hand-in-hand.”

One issue the company is facing — and innovating on — is the chocolate shortage. Currently, 70% of global cocoa is grown in West Africa, but periods of drought, aging trees and disease have led to poor crop yields. In response, Mars has partnered with gene-editing company Pairwise to accelerate cacao research and development, tackle agricultural challenges, and increase crop production.

Pairwise’s gene-editing platform is designed to accelerate the development of impactful crop traits, such as faster growth cycles, compared to traditional breeding methods. The partnership has already had a 72% success rate in targeted crop improvements, easing strain on supply chains and lowering chocolate prices.

Cacao isn’t the only crop challenging candy companies. Mint is also a key ingredient; unfortunately, fluctuating weather patterns, soil health and disease have negatively affected crops across the globe. To that end, Mars launched Shubh Mint, an initiative focused on improving plant science. This includes “developing plant strains capable of resisting diseases, adapting to climate changes, boosting yields and optimizing water use,” Supply Chain Digital reports.

To help small farmers with the supply chain issues specific to their regions, Mars is also investing in training them in new methods of planting, irrigation and soil health. Growers are even taught how to collaborate more effectively with suppliers, improving relationships and deepening understanding of their livelihoods.

In India, where 80% of mint is currently grown, Mars is also committed to reducing gender disparities. By partnering with international nonprofit Tanager, the company is supporting women farmers with training, loans and general education. Through these cooperative efforts, Tanager has boosted mint farm income by 156%, benefiting 25,000 growers.

At the same time, Mars is making a major move toward supply chain decarbonization by partnering with clean energy providers. As part of its Renewable Acceleration Program, the company aims to speed its transition to sustainable electricity by sourcing clean energy for its entire value chain. This ambitious strategy is intended to cut approximately 3 million tons of carbon emissions, amounting to an estimated 10% of the company's footprint.

Growing supply chain resilience

Beyond its environmental benefits, sustainable supply chain management also improves employee engagement and retention. Resarch from ASCM and Gartner reveals why companies with rigorous sustainability mandates report such positive employee metrics. Download the report to learn how prioritizing sustainability can lead to better talent outcomes. Then, use our free Supply Chain Maturity Assessment to uncover gaps; benchmark against SCOR standards; and receive expert insights to build a more resilient, optimized supply chain. Get started elevating your performance today.

Project Management and S&OP: An Overlooked Partnership

Wed, 17 Sep 2025 00:00:00 -0500

The relationship between project management and sales and operations planning (S&OP) is an undervalued connection in the world of supply chain. The disciplines are rarely discussed in tandem, yet their integration is crucial for success. By aligning the tactical, short-term execution of project management with the strategic, long-term focus of S&OP, organizations can ensure that their initiatives directly support overarching business objectives.

It’s not difficult to find key logical intersections between the two disciplines. Yet most S&OP guidelines barely mention project management. This is a disconnect — and a bit of a surprise — as most organizations have a never-ending list of pressing projects, many with supply chain impacts.

This, then, begs the following questions: Which organizational projects call for discussion within the S&OP process? Is there a set of best practices governing which criteria to use? And what role does the project management office have in the S&OP process?

3 rules for project management and S&OP

Consider the following three simple rules for incorporating project management within S&OP meetings:

1. The project must have reasonable potential for significant impact — positive or negative — on supply or demand.

2. The project must affect the strategic direction of the organization and correlate to measurable supply chain metrics.

3. The project must be substantial in either organizational reach or financial implication.

There are some projects that clearly belong to the S&OP meeting agenda. For instance, starting up a new production line, reconfiguring a distribution network or implementing a tool to optimize new inventory would all be obvious choices. Then, by using the S&OP process to keep focus on the progress of such projects in real time, a business can flex and adjust their demand plans, inventory buffers or sourcing strategies to minimize any disruption associated with the project.

By contrast, there are many organizational projects whose impact on S&OP isn’t immediately clear. Launching a new corporate logo, for example, could have an impact on supply — whether it be in the form of a packaging change or something that draws consumers to the business in a new way. Likewise, a sustainability project to remove chemicals in product formulations could pose a problem if the company stands to incur excessive disposal costs for raw materials from the older formulation. An enterprise resource planning (ERP) implementation might lead to delayed production or shipments.

The common thread across these projects is that they have operational dependencies that are not obvious and might be overlooked. For example, a delay in deploying a new ERP system or meeting timeline milestones for an acquisition integration can subtly strain resources, trigger unplanned volatility in demand or lead to data flows out of alignment. A prudent S&OP leader should anticipate such hurdles and work with project managers to determine whether any projects pose such concerns. And if so, the organization should proactively raise these problems during S&OP to properly create contingency plans.

The benefits are worth the effort

The true value of integrating relevant projects into the S&OP process is that it provides cross-functional visibility for decision-making. This practice helps ensure projects are vetted against operational realities before they create issues. The goal of an effective S&OP meeting is to proactively eliminate surprises before they disrupt the business, and project updates serve that exact purpose.

A project management update within S&OP doesn't have to be complex. It's often a simple, straightforward list of projects that includes associated costs and a red/yellow/green status to quickly identify potential delays or cost overruns that could impact supply or demand. Typically included as a simple slide at the back of the deck, it's a tool used for discussion only when a project is material to the business. If a project issue, such as a delay in a production line redesign, is significant enough, it can be escalated to an executive review. This process ensures that common sense governs what gets discussed and how.

On balance, including relevant project updates in S&OP builds trust in both the project's execution and the S&OP process itself. When leaders see projects are on track, it reinforces confidence across the organization. Likewise, when stakeholders know that projects are being tracked and that issues will be addressed — not hidden — if something goes wrong, it ensures leaders have a full 360-degree view of all supply chain-relevant initiatives. This leads to faster, better-informed decisions.

Ultimately, incorporating project management insights into the S&OP process isn't about adding complexity. It's about surfacing the right conversations early to avoid surprises. Done well, this approach leads to better alignment and transparency, transforming S&OP from a static planning meeting into a living, strategic forum that connects day-to-day execution to long-term vision.

A Time of Impact at CHAINge

Fri, 12 Sep 2025 00:00:00 -0500

What an inspiring few days! At ASCM’s CHAINge conference, global supply chain leaders came together to explore how our field is becoming a strategic engine of growth, resilience and innovation.

One highlight for me was former U.S. Secretary of Commerce Gina Raimondo. She spoke candidly about why supply chain sovereignty demands partnership. No one — government, industry or academia — can solve these challenges alone. Her leadership on the CHIPS and Science Act, as well as the SCALE initiative, illustrated what’s possible when those sectors pull in the same direction. Raimondo also reminded us that “bringing manufacturing home” isn’t as simple as flipping a switch. It requires policy alignment, workforce development and logistics infrastructure — plus a nuanced understanding of global interdependencies.

Adding to the momentum was Katelyn Christ, recently appointed Assistant Secretary Supply Chain Initiative, which reports into the Department of Commerce. Christ discussed how the new Supply Chain Center goals are to leverage advanced data and analytics to improve supply chain visibility and resilience across both government and private-sector supply chains, with an emphasis on enabling private industry to operate more effectively. She noted how this effort connects to emerging policy tools including the Promoting Resilient Supply Chains Act, which seeks to strengthen critical networks and encourage cross-sector collaboration.

Another standout voice was Henrik Von Scheel, widely recognized as an architect of Industry 4.0. Von Scheel challenged the audience to view today’s supply chains not just as logistical systems but as adaptive, self-optimizing networks. Drawing on his experience shaping the original Industry 4.0 framework, he explored how AI, cyber-physical systems and next-generation manufacturing can create supply chains that sense, learn and react in real time. His insights underscored that the next competitive edge lies at the intersection of digital transformation and operational resilience.

The Chain Documentary release

The insight and innovation were not limited to the conference floor. This week also marked a major milestone for ASCM with the launch of "The Chain," a new docuseries now streaming on Prime Video. Produced in partnership with WAG Entertainment, the six-part series gives viewers a rare look at the hidden infrastructure that makes the world work.

“The Chain” uses expert interviews and compelling stories to reveal the often-invisible world of supply chains, bringing them to life and recognizing the invaluable contributions of professionals in the field. The series was created to spark conversation, raise awareness about the systems that keep our world moving and empower consumers to make more informed decisions. It's a unique way to elevate our profession and demonstrate its profound impact on our modern world.

I encourage you to watch and help us spread the word on social media using #TheChain #ASCM #SupplyChainDocumentary. To access it, search for "The Chain" in Prime Video; or, on Amazon.com, search for "The Chain documentary." You can also watch all six trailers.

The series clearly demonstrates how the daily choices people make are the ultimate drivers of meaningful change. After all, when consumers understand everything that goes into keeping our global networks running both efficiently and ethically, they can help us harness the potential of supply chains to make the world better for all.

IOT-Powered Logistics: Revolutionizing Supply Chain Visibility and Security

Sat, 06 Sep 2025 00:00:00 -0500

Logistics management and inventory tracking have always been vital to business success. Historically, these methods were more functional than efficient, with companies relying on manual counting, punch cards and simple bar codes to track goods. More recently, new technologies made tracking easier with the introduction of radio frequency identification (RFID), which monitored location and conditions in near real time. This paved the way for the internet of things (IOT), a network of connected devices that would ultimately transform logistics.

What is the IOT for logistics?

The IOT for logistics refers to using a network of internet-connected sensors, devices and software to gather and exchange data throughout the supply chain. These devices can be embedded in products, vehicles, warehouses and more to collect real-time information on location, temperature, humidity and other key data points. This information is then sent to the cloud, providing unprecedented visibility into every step of a product’s journey.

How is the IOT useful in logistics?

The IOT for logistics offers significant benefits, particularly in a complex and unpredictable global environment. First, these devices provide real-time visibility, which is crucial for modern supply chain risk management. With sensors providing data about the condition and location of goods, logistics managers can identify and respond to disruptions immediately, improving supply chain resilience. This real-time data visibility also dramatically improves the planning process by providing accurate, up-to-the-minute information.

Second, the data from IOT devices offers valuable insights for operations. For example, with the IOT in warehouse management, connected devices can track inventory with pinpoint accuracy, optimizing workflows and improving efficiency. The constant flow of data from these devices is foundational to visibility in supply chain logistics and helps companies move from manual systems to a data-driven, automated approach.

Finally, IOT solutions are enabling greater supply chain traceability and security. From edible microchips in luxury foods to smart labels and unique QR codes, these devices create a digital twin for each product. This helps combat counterfeit goods and guarantees authenticity. As a result, the ability to fulfill an order quickly, accurately and with full transparency is becoming as important as the product itself.

Choosing the right device

Today, IOT devices are becoming smaller, cheaper and more functional, offering far greater capabilities than previous solutions. According to a McKinsey report, the IOT market could be worth up to $12.6 trillion globally by 2030, with a significant portion of that value concentrated in supply chains.

The options for devices are plentiful, and seleting the appropriate tool depends on the use case. RFID or Bluetooth may work well to track inventory in and out of facilities in a closed-loop supply chain, whereas a device with wide-area network connectivity and additional sensors is better for understanding where in a multi-leg journey supply chain goods get damaged or held up. Smart packaging is ideal when the supply chain manager or consumer needs to be sure a product is authentic, and smart labels specifically are becoming much more widespread: ABI Research estimates that 581 million smart labels will be shipped in 2028.

QR codes gained popularity with consumers during the pandemic due to their simple format and integration with smartphones. And unlike bar codes, the information stored in a QR code is extensive: up to 7,000 characters, making them useful for supply chain managers seeking product data as well as customers interested in understanding more about their purchase’s authenticity.

An evolution in inventory tracking

From manual counts and bar codes to today's smart sensors and data analytics, logistics has evolved to a point of unprecedented intelligence and efficiency. The IOT for logistics is not just a trend; it's the foundation of a new era, enabling real-time visibility and traceability that fortify the modern supply chain. While this technological leap introduces challenges, the potential for improved supply chain resilience, greater security and more precise operations demonstrates that the future of logistics will be defined by an ever-smarter, more connected world.

Develop a working knowledge of the emerging technologies that are affecting supply chains with the ASCM Supply Chain Technology Certificate.

Editor's note: This article has been updated to reflect current supply chain topics and trends. The original publication date was September 2023.

Supply Chain Careers Shine Through in an Unclear Economy

Fri, 05 Sep 2025 00:00:00 -0500

Uncertainty is in the air. Whether it's the rising costs of daily life, global unrest, or risks associated with tariffs or climate change, there's a collective sense that something has shifted.

New research from The Wall Street Journal underscores this feeling of discontent, finding that, for many people, the once-clear path to a better life seems obscured. Polling reveals that the percentage of people who believe they have a “good chance of improving their standard of living” has fallen to just 25%, a record low.” Moreover, more than three-quarters of those surveyed don’t think things will improve for the next generation.

This widespread pessimism spans demographic lines, from gender and age to education and political affiliation. The article points to several reasons, including high housing prices and labor-market concerns fueled by AI. More than half of respondents have “little or no confidence” in their ability to save for retirement. And the majority believe that earlier generations “had an easier time buying a home, starting a business or being a full-time parent rather than in the workforce.”

This pessimism isn't limited to individuals. CNN notes that companies are also feeling the pressure, with America in a "serious jobs slump." For the first time in more than four years, there are fewer open jobs than there are job seekers.” This shift has led to a "stale" job market, as workers hold onto their current positions much longer.

Adding to the concern, generative AI is causing anxiety for many people. According to CBS, AI is replacing countless entry-level professionals in software engineering and customer service. Similar trends have been tracked in accounting and auditing, administrative work, computer programming, and sales.

A welcome opportunity

Without dismissing people's valid concerns about the economy and the job market, there is hope. Supply chain professionals like yourself know that pursuing a career in our field is a uniquely valuable opportunity. Jobs are plentiful, with 53% of companies recruiting new roles this year. And ASCM’s 2025 Supply Chain Salary and Career Report finds that 66% of professionals are confident in their career prospects. Plus, the median salary is an impressive $103,000, and 80% report high job satisfaction. For those holding an APICS certification, the outlook is even better, with a 20% median salary increase. As Forbes confirms, specialized credentials pay off, and APICS credentials are "top tier."

If someone you know is feeling stuck in a stale job market, encourage them to explore what a career in supply chain has to offer. With proven job stability, excellent pay and rewarding work, it’s a field where we can all feel confident about the future. There are simple ways to get started: First, ASCM membership is just $10 a month — and free for students. Then, sign up to receive this weekly email, as well as Supply Chain Signals. Both e-newsletters are designed to help readers stay competitive and current in any marketplace.

Get started with ASCM today and see the future in a whole new light.

Pharma Supply Chains Re-engineer for Resilience

Fri, 29 Aug 2025 00:00:00 -0500

A collision of geopolitical tensions and extreme weather is pushing the world's critical pharmaceutical supply chains to a breaking point. In response, major pharma companies are making strategic, multi-billion-dollar investments to re-engineer production, marking a fundamental shift in how these networks are designed and managed. This isn’t just a business decision; it’s a matter of both public health and national security — and it highlights that, for today’s supply chains, the ability to withstand and recover from shocks is as vital as cost-efficiency.

This new reality came into focus this past week, when Johnson & Johnson announced a $2 billion investment to expand its local manufacturing presence, per Reuters. According to the article, the move is a direct response to current U.S. trade policies, which include proposed phased-in tariffs for the pharma sector that "could start small but eventually rise to 250%”. In a sign of things to come, J&J plans to build a massive manufacturing facility in North Carolina, creating about 120 new jobs.

For supply chain professionals, the tariff era means learning to balance financial priorities with long-term resilience. For consumers, though, it can be a matter of life and death. This is largely because a drug’s journey from raw material to finished product is far more complex than most people realize, and these political maneuvers are disrupting that delicate balance.

A New York Times analysis offers a stark examination of this complexity by showing how many well-known drugs made. Active ingredients for a single medication often come from more than one country; then, these components are shipped to another location to be formulated and processed into their final dosage form, such as tablet, capsule or liquid.

Structural dependence on a handful of global hubs for life-saving medicines is a major vulnerability — one that's pushing major players to make investments in localization. Indeed, J&J isn’t alone:

Eli Lilly and Company has plans for more than $50 billion in U.S. capital expansions, including four new manufacturing sites that will focus on producing active ingredients and other key components.

Novartis has committed to a $23 billion investment over five years to expand its U.S. manufacturing and research footprint.

Roche announced it will invest $50 billion in existing and new U.S. manufacturing facilities over the next five years.

Importantly, tariffs are not the only threat to pharma networks. New research from the American Cancer Society found that nearly two-thirds of production facilities are located in a nation that experienced at least one weather disaster between 2019 and 2024. The study cited Hurricane Helene in 2024, which triggered a nationwide shortage of intravenous fluids, proving that both political and environmental factors have converged to challenge supply chain integrity and patient care.

Behind the scenes of health care logistics

These and many other key issues are addressed in The Chain, a six-part documentary that offers an unparalleled look at the inner workings of supply chains. We'll be sharing more about this exciting release very soon; in the meantime, explore the ASCM Supply Chain Resilience Certificate to fully integrate resilience into your supply chain organization. You will learn how to make data-driven decisions, protect your company's bottom line and ensure the well-being of end consumers. Get started today.

5 Ways to Reduce Transportation Costs

Thu, 28 Aug 2025 00:00:00 -0500

Transportation costs in the shipping industry continue to surge. These skyrocketing expenses, driven by global trade volatility and a lack of proper planning, can lead to failed deliveries, unhappy customers and lost business. To combat this trend and regain control of your bottom line, consider these five important strategies:

1. Provide your drivers with well-optimized routes. One bad route can make all your good planning efforts futile. Vehicles run empty. Drivers face unbalanced workloads. Drivers spend more time on the road stuck in traffic or traveling longer-than-necessary distances. All of this leads to skyrocketing fuel usage and expenses. Add in any overtime costs for drivers spending more time than estimated on the road, and the bottom line looks even worse. To ensure accurate and well-optimized routes, consider using a route planner. This tool automates the route-planning process, factoring in traffic, weather conditions, sunrise/sunset times, one-ways, avoidance zones, weight and load capacity, and more.

2. Monitor drivers. Planning optimized routes may be the most important step, but it won’t have any impact on your total costs if your field reps and drivers don’t follow it. They may make personal stops, idle vehicles for too long, brake frequently or even accelerate harshly to make up for delayed deliveries or appointments. Such actions inevitably lead to increased expenses and even excessive fuel usage or road mishaps. Track your drivers and vehicles in real-time with a simple GPS to monitor status and provide speed alerts. A tracker can even help you protect your vehicles from theft.

3. Educate and reward field reps. Field reps are essential stakeholders in your transportation activities, and you cannot optimize transportation processes without their 100% involvement. So, let them know why it is important for the business to save on fuel, as well as how they can contribute to reducing other expenses. Rewarding them for fuel-efficient driving will boost their morale and commitment to saving even more. Again, a route optimizer can help. Its reporting and analytics feature will give you the data you need to identify every fuel expenditure, which you can then use to provide feedback about performance.

4. Ensure regular vehicle maintenance. A breakdown can cost as much as $760 per vehicle per day. Avoid breakdowns and keep your vehicles in top shape with preventive maintenance. A successful program tracks total distance traveled, number of stops and amount of fuel used, as well as regular vehicle inspections.

5. Eliminate failed deliveries. Sometimes, your drivers show up on time, but the customer is unavailable. Such an event not only jeopardizes your other deliveries or appointments but also costs you more, as your drivers will need to go back to that stop again. One of the best ways to improve first-time delivery success is by empowering customers to choose their preferred delivery windows. Other proven methods include allowing customers to track their delivery statuses and providing notifications when packages are nearby.

Running smoothly

The turbulent economy is making it difficult for field service and transportation businesses to thrive. Understanding your transportation costs and how to mitigate rising expenses are essential to winning the transportation race.

Take a deeper dive into logistics strategy, capacity planning and demand management with ASCM's Certified in Logistics, Transportation and Distribution (CLTD) credential. Earn your CLTD today.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was June 2020.

AI and Diversification Help Companies Offset Tariffs

Fri, 22 Aug 2025 00:00:00 -0500

Over the past several months, consumers and supply chain professionals alike have been worried and waiting for President Trump’s final decision on his tariff policy. After a rocky rollout, new tariffs on foreign goods — some unexpectedly even for importers — are now broadly in effect worldwide.

A major new tariff that went into effect this week is a 50% levy on steel and aluminum. Butter knives, baby strollers, spray deodorants and fire extinguishers — once deemed derivative products and thus exempt from the targeted tax — are now considered part of the 407 categories of goods subject to the higher rate, reports CNN. Importers now face a difficult choice: They can absorb the added costs or pass them on customers. Of course, taking on a tariff as high as 50% is a near-impossible burden.

This latest round of tariffs is a signal that tougher economic times are just ahead, suggests The Wall Street Journal: “As more countries release figures for economic growth that cover the second quarter of this year, a clear pattern has emerged. Those that grew rapidly in the first quarter as U.S. businesses raced to build up inventories ahead of higher tariffs slowed in the second quarter as those duties were imposed.”

So far, most countries have avoided implementing countermeasures against Trump’s tariffs, which has been beneficial to the global economy — and the United States. But it will take some time “before the impact of tariff increases that are already settled is clear, and it is likely that further increases in duties will add to the damage,” The Journal continues. Still, the World Trade Organization is now predicting that global trade will expand by 0.9% this year, versus the decrease of 0.2% it previously forecast, mostly based on American importers rushing to bring in goods before tariffs went into effect.

For its part, Home Depot plans to raise prices to match the higher costs created by tariffs, reversing an earlier commitment to keeping prices steady. There’s a weaker demand for DIY currently, so the retailer is aiming to attract business from contractors and professional builders instead. Notably, leaders at the home-improvement giant say they are also accelerating supply chain diversification.

Another article in The Journal notes that jewelry company Pandora has a similar plan, which includes “diversifying its supply chain and shipping jewelry directly to Canada and Latin America, bypassing its U.S. distribution center,” as well as raising prices and cutting costs. Currently, Pandora makes most of its products in Thailand — now subject to a 19% reciprocal tariff.

Diversification isn’t the only way to navigate uncertainty. Despite the headaches caused by low inventories during the pandemic and the rush to beat the tariffs at the outset of the year, just-in-time inventory management is back, per Reuters, but this time with a twist: artificial intelligence. The chief supply-chain manager of U.S. lawnmower maker The Toro Company says he “uses AI to digest the daily stream of news that could affect Toro's business… [and] generative AI to sieve an ocean of data and to suggest when and how many components to buy from whom.”

Representatives from SAP, Oracle, Coupa, Microsoft and Blue Yonder all report strong growth for generative AI solutions for supply chains, and supply chain consultancy GEP says that the volatility of Trump’s tariffs are helping drive demand.

More CHAINge on the horizon

Of course, even with the best AI, “humans still need to make strategic and big tactical decisions,” Reuters states. And CHAINge North America, September 9-10 in Columbus, is where you and your team can develop these essential skills. Check out educational sessions including Harnessing AI in Supply Chain: A Structured Roadmap with SCOR. You’ll discover how to ensure critical standardization with the industry-leading SCOR framework, produce and implement effective roadmaps, and use AI to optimize supply chain operations and boost competitive advantages. Register today!

5 Key Points on Global Trade for Supply Chain Professionals

Wed, 20 Aug 2025 00:00:00 -0500

The global supply chain landscape continues to experience a period of significant transformation. To ensure the resilience and efficiency of their operations, organizations must adapt to these evolving dynamics. Here are some key strategies:

1. A new era of geopolitical risk: The geopolitical landscape is becoming increasingly volatile, with rising tensions between major powers and a growing number of regional conflicts. The U.S.-China trade war has highlighted the vulnerabilities of global supply chains, exposing them to the risks of disruption and uncertainty. As countries seek to reduce their reliance on specific suppliers and diversify their supply chains, businesses must be prepared to adapt to changing geopolitical dynamics.

2. The rise of multipolarity: The world is shifting toward a multipolar order, with numerous centers of power emerging. This shift has significant implications for supply chain management, as businesses must navigate a more complex and competitive global environment. The rise of regional powers, such as China and India, is reshaping global trade flows and supply chain networks.

3. The impact of technology: Technological advancements are revolutionizing the way supply chains operate. Artificial intelligence, machine learning and the internet of things enable companies to optimize inventory levels, improve forecasting accuracy and enhance supply chain visibility. Automation and robotics help reduce labor costs and improve efficiency. However, it's important to note that technology alone is insufficient; a skilled workforce is essential to effectively implement and leverage these technologies.

4. The human factor: The human element remains critical to supply chain success. Investing in talent development and employee training is essential to building a skilled workforce. By fostering a culture of innovation and continuous improvement, organizations can adapt to changing circumstances and drive growth.

5. Balancing globalization and localization: While globalization has brought numerous benefits, it has also exposed supply chains to vulnerabilities. As a result, many companies are exploring strategies to balance globalization and localization. This may involve reshoring production, nearshoring to nearby countries or diversifying supplier bases. It's also important to carefully consider the costs and benefits of these approaches and to avoid hasty decisions.

To navigate this complex landscape, supply chain professionals must be proactive, adaptable and innovative. By understanding the key trends shaping the industry and taking proactive steps to mitigate risks, organizations will be primed to build resilient supply chains that can withstand future disruptions.

Editor's note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was October 2021.

10 Ways to Select Effective S&OP Consensus Discussion Items

Tue, 19 Aug 2025 00:00:00 -0500

The demand consensus meeting is one of the most important steps in sales and operations planning (S&OP). After all, its output is a demand plan that serves as a critical input for all other S&OP process meetings. (For an in-depth explanation of consensus, check out this article from the ASCM Insights Blog.)

If the consensus meeting is so vital to the process, choosing to talk about the right items during consensus must be equally essential. But how do you decide what to bring to the table? Which items deserve attention, and which can be left to the mathematical muses to figure out? After considering these questions, I finally hit on the answer: exceptions.

When demand planning, we often set up a series of data-based exception reports that highlight singular problems — perhaps items with a high forecast error, ones that reveal no actual sales over three reporting periods, or product families that reflect trend mismatches between the prior year and the forward view. Then, we bring a dozen or so of these exceptions to the consensus meeting for discussion.

While these mathematical exceptions are heavily relied on, we also use judgmental filters that allow us to apply relevance, instinct and gut feeling to the demand plan. We consider whether a product is new or strategically important; if it has leadership attention because of its channel, customer or competitive activity; if the volume — measured either in dollars or unit volume — is worthy of special consideration or exclusion.

Use data and judgement to find consensus

Following is a list of exceptions and filters that I use for facilitating consensus. Not every one will work for every business; some will intersect each other. But using these strategies, my demand planning teams have been able to significantly improve overall supply chain resilience. Here they are:

1. Relevance screen: Is the product on the long tail of the revenue stream or already planned for discontinuation? If yes, then manage these products to their likely demise and exclude them from consensus intervention. No one wants to discuss a $15,000/year stock-keeping unit (SKU). Establishing relevance filters — such as, “Let’s only discuss items with annual volume above $100,000 or with variance greater than 25%” — improves the conversation.

2. Newness magnifying glass: Consensus should include a discussion of all new product forecasts, regardless of volume expectations, from approval through prelaunch and postlaunch. The objective is to evaluate new, unplanned insights, such as product rejection or an add from a major customer. And during postlaunch, it’s wise to track actuals for both shipments and consumption because both were likely factors in the rationale for launch approval. Leadership always focuses on new products; you should too.

3. Level/trend/seasonality review: If product data reveals a notable change in trend, a step change up or down in demand, or a shifting of seasonality, then you need to discuss it.

4. Gap-to-budget test: Any item that varies more than 10% from quarterly budget expectations calls for examination. Gaps are often due to poor budgeting, poor demand planning or some combination of both. A budget is an expectation of top-line and bottom-line performance, and S&OP requires that any significant budget gaps are explained (and preferably closed).

5. Size-matters scan: A significant volume shift or error affecting a large product family, customer or item always merits discussion. If Walmart’s business is off 10% and Walmart represents 50% of your company’s total volume, you need to take a deep dive. Similarly, when I was at Snapple, we would react strongly to any shift in the tea product family, especially those changes affecting lemon tea SKUs, because these were the largest volume drivers inside the portfolio. Consensus should always give plenty of attention to the workhorses.

6. "Oops, I did it again" recheck: I always revisit any items that were raised for discussion during the prior month’s consensus meeting. I do this for two reasons: to confirm whether the prior exceptions have been resolved, and because any metrics that are out of control for two months back-to-back merit another review.

7. Data-can-be-messy acknowledgment: Is a product or a customer registering zero sales for the past couple of months? Is there an imbalance of volume shipping out of one warehouse versus another? What about those pesky, undefined product families in the hierarchy? Any of these scenarios can lead to either bad forecasts or execution, and they may indicate other problems. Data issues such as these are fair game for discussion at consensus.

8. Buzzworthy platforms audit: Review any platform or sales channel that might be subject to internal or external buzz, such as a new marketplace contender, a media shift by a competitor or a change in product awareness driven by a viral reel. Buzz alone (especially external buzz) can sometimes trigger change in volume; when that happens, a forecast adjustment is typically needed.

9. Strategic importance probe: I recall once being puzzled while working as a consultant for an alcoholic drink company because the planners obsessed over the forecast and prebookings for the same item every consensus cycle, even though it sold only 10,000 units per year. I came to realize it was a super-high-end Scotch that sold for $2,500 a bottle with a 90% profit margin — and also a bellwether that helped foretell the fates of some of the other higher-end brands. Some products are more important than their volumes may suggest.

10. Boy-did-we-screw-up admission: Of course — and probably most importantly — items with the greatest forecast error should always be discussed during consensus.

Gain the knowledge your business needs to manage risk and disruptions. Explore ASCM's CPIM program to work confidently across all functions of the supply chain and streamline your demand consensus meetings.

Editor's note: This article has been updated to reflect current industry trends. The original publish date was October 2023.

AI-Driven Control Towers Power Next-Generation Supply Chains

Mon, 18 Aug 2025 00:00:00 -0500

In today's hyperconnected world, supply chain control towers are evolving from passive monitoring systems into intelligent command centers that orchestrate global operations in real time. These next-generation platforms represent a fundamental shift from traditional management approaches, combining AI, real-time data processing and predictive analytics to create what industry experts call cognitive control towers. By continuously monitoring millions of data points — from factory floor sensors to consumer behavior patterns — these systems can detect and respond to changes before they impact operations.

A supply chain symphony

Traditional control towers functioned primarily as visualization tools, offering a consolidated view of supply chain activities. Today's intelligent control towers operate more like air traffic control systems for global commerce. They process vast amounts of real-time data, making autonomous AI-based decisions that ripple across entire supply networks. For example, when weather patterns suggest potential disruptions in Southeast Asia, these systems don't just raise alerts; they orchestrate comprehensive responses across production schedules, inventory positions and logistics networks powered by AI agents.

Intelligent orchestration

Modern control towers achieve their power through seamless collaboration across multiple systems. Picture a vast digital orchestra where each instrument plays its part in perfect harmony. When early-warning systems detect shifting consumer preferences, the control tower initiates a cascade of coordinated actions. Inventory systems adjust stock levels, procurement platforms modify ordering patterns and logistics networks reconfigure transportation routes — all working in concert to maintain perfect supply chain harmony.

In a typical scenario, the control tower might detect subtle signals indicating a potential surge in demand. Rather than waiting for explicit order data, the system analyzes social media sentiment, weather forecasts and economic indicators to predict likely demand patterns. This intelligence triggers automatic adjustments across the entire supply network, from manufacturing schedules to distribution plans.

Three dimensions of intelligence

Modern control towers operate across three interconnected dimensions that together create a comprehensive command and control capability:

Sensing and Interpretation. At this level, control towers act as the supply chain's sensory system, processing millions of data points in real-time. They monitor everything from production line efficiency to transportation network status, creating a dynamic picture of the entire supply chain ecosystem. The system's ability to interpret these signals — distinguishing between normal variations and significant trends — forms the foundation of intelligent response.
Dynamic orchestration. This dimension focuses on turning insights into action. The control tower doesn't just identify potential issues; it orchestrates responses across multiple systems and organizations. When potential disruptions are detected, the system automatically initiates contingency plans, adjusting operations across the entire network to maintain service levels and minimize impact.
Continuous learning. The third dimension involves continuous improvement through machine learning. Every decision, every response, every outcome feeds back into the system's intelligence, creating an ever-evolving knowledge base that improves future decision-making. This learning capability means the system becomes more effective over time, developing an increasingly sophisticated understanding of supply chain dynamics.

Transforming the human element

While automation and artificial intelligence are central to modern control towers, the human role becomes more strategic rather than less relevant. Supply chain professionals evolve from reactive problem-solvers into strategic orchestrators, leveraging the control tower's capabilities to drive innovation and improvement. The system handles routine decisions and responses, freeing human experts to focus on strategic initiatives and complex problem-solving.

The next evolution

As these systems continue to mature, autonomous supply chains will continue to emerge. Future control towers will likely incorporate quantum computing capabilities for even more sophisticated optimization, enhanced predictive capabilities through advanced AI and deeper integration across supply chain partners. The goal isn't just better monitoring or faster response; it's the creation of truly intelligent supply networks that can adapt and evolve autonomously.

The transformation of supply chain control towers is a fundamental reimagining of how global supply chains are managed. By combining AI, real-time data processing and autonomous decision-making capabilities, these systems are creating more resilient, responsive and intelligent supply networks. Organizations that embrace this evolution will optimize their operations and position themselves to thrive in an increasingly complex and dynamic global marketplace. The future belongs to those who can effectively harness these capabilities to create supply chains that aren't just efficient, but truly intelligent.

Trader Joe’s Supply Chain Paradox

Thu, 14 Aug 2025 00:00:00 -0500

Many grocery stores operate on a "more is more" philosophy, as shelves overflow with tens of thousands of products. But if you've ever stared down an entire aisle of salad dressings, you know the feeling of decision fatigue. That overwhelming sense of having too many choices, alongside inflation, has pushed many retailers to scale back on options. Today, some grocers are striking a new balance that aims to prioritize store-brand offerings while maintaining enough variety to keep shoppers from feeling like they're missing out.

No one epitomizes the success of the private brand like Trader Joe’s. The California-based cult favorite, founded nearly 60 years ago and known for its tiki theme and friendly crew, prides itself on a “curated, private-label-heavy product mix,” notes Thomasnet. “By avoiding costly promotional campaigns, the company reduces overhead and can offer consistent and competitive prices.”

The store maintains relationships with manufacturers around the world that rebrand exclusively for TJ’s, cutting out intermediaries. Plus, to optimize shelf space and reduce waste, “a carefully curated selection allows it to buy in bulk, negotiate better terms with suppliers and simplify its supply chain operations.”

Notably, TJ’s also keeps costs down by leveraging a spoke-and-hub model, with nationwide distribution centers meeting local stores’ needs. Multiple weekly shipments enable just-in-time inventory restocking, minimizing backroom storage requirements and keeping down freight costs.

Yet despite TJ’s popularity, there are several noteworthy shortcomings: For one, fruits and vegetables tend to spoil faster and can be inconsistent in quality, a side effect of the tight, global supplier network and cost-cutting focus. Also, while some items are a bargain, many are priced per item instead of by weight, which can make them more expensive than at other stores. And TJ's is known for its excessive use of plastic packaging, which raises sustainability concerns and contributes to the shorter shelf life by limiting air circulation.

Fast Company also reports that TJ’s has a “record number of recalls,” and Newsweek adds that these have affected a total of 31 states along with Washington D.C. just this year. The affected items include salad dressing, sparkling mineral water, canned tuna and frozen acai bowls, and they were recalled for undeclared allergens, possible contaminations and packaging defects. Newsweek notes that the recalls “highlight risks in third-party manufacturing, food labeling and container integrity.”

The question, of course, is whether people will accept less choice, faster spoilage and possible safety hazards in favor of brand loyalty and often lower prices: According to research by The Associated Press-NORC Center for Public Affairs Research, many consumers may be willing to take that leap. In fact, 53% of people say the price of groceries is a “major” stress, with only 14% reporting their food shopping to be stress-free. And it’s no wonder, as overall costs are 2.7% higher than a year ago, with inflation continuing to rise. Per CNN, eggs, beef and orange juice prices have risen sharply due to supply challenges and extreme weather. There are also signs that President Trump’s tariffs are beginning to affect the cost of imported fruits, canned goods, coffee and more.

Navigating the trade-offs

As many industries face the dual pressures of keeping prices low and ensuring product quality, building solid relationships with your suppliers is essential. ASCM’s Supplier Management Certificate will help you and your team learn to identify, evaluate and deepen these partnerships; negotiate successful contracts and agreements; and enhance organizational efficiency to drive value across your supply chain. Sign up today for the Supplier Management Certificate, or any one of our suite of educational programs, to stay current with critical supply chain trends and advance your career. A strategic investment in ASCM certificate programs is a proven opportunity to generate lasting returns for both you and your organization.

Cracking the Bullwhip Effect

Wed, 13 Aug 2025 00:00:00 -0500

From global trade tensions to shifting consumer habits, supply chains are constantly disrupted by an unpredictable mix of events. As a result, the bullwhip effect — the phenomenon of small changes in consumer demand triggering increasingly large oscillations in orders up the supply chain — has become a persistent challenge. What can supply chain professionals do to crack the bullwhip effect? First, we must remember that the focus of supply and demand is threefold:

1. Deliver quality services to a business’s final customer.

2. Acquire appropriate information about a product’s demand.

3. Provide the demanded product to the customer on time and with consistency.

What causes the bullwhip effect?

In the past, production planning used forecast demand for products, derived from earlier patterns of customer use. Today, however, supply chains that have embraced digital transformation are changing the ways in which materials, information and financial flows are managed within the integrated business network — customers, retailers, wholesalers, distributors, manufacturers and suppliers. Now, demand is transferred from one set of participants to another.

In addition to global disruptions, the bullwhip effect occurs when there is lack of information and communication among the participants, causing administration hurdles. Managers order inventory based on historical data to meet expected demand; to prevent going out of stock, suppliers also need some safety stock. This perception of the business of supply leads to demand variability and increases the chance of error in forecast demand, causing the bullwhip effect.

Through this distortion in forecast demand, the profitability and performance of the organization is reduced. Meanwhile, inventory holding costs increase, which may lead to stocking obsolete inventory. Therefore, to crack the bullwhip effect, it is important to understand where the inventory is; what is the actual demand; and, most importantly, that the forecast demand should be properly aligned with each level of the supply chain.

The importance of well-trained employees

The bullwhip effect occurs when there is a lack of understanding about demand among supply chain participants. People, therefore, must be trained to analyze the effects of the decisions they make in the ordering system so that they can identify any perceived distortion in the demand. Moreover, information and material delays might contribute to the bullwhip effect. When supply chain participants eliminate time delays, the demand amplification can be significantly reduced.

At each level of the supply chain, participants predict demand with the help of customers’ historic data or buying patterns. But, after orders move from retailer to distributor and distributor to producer, the forecast demands must be modified. The longer the supply chain, the more participants it requires at each stage, which increases the chance of unstable demand among participants. It also increases the chance of obsolete inventory when there is no visibility — or understanding — of actual customer demand.

The grouping of orders depends on the internal strategic policies and criteria of companies. For example, firms are more likely to order regularly, and in greater quantity, from a major supplier to gain economies of scale, to achieve a reduction in transportation costs, and to get discounts on a full truckload. However, larger orders create more variability and opportunities for order-cycle overlap, which increases the likelihood of the bullwhip effect.

How EDI can help ease the bullwhip effect

To prevent order batching from creating the bullwhip effect, an organization can deploy electronic data interchange (EDI), a method for transferring data among different computer systems or networks and creating links between retailer and supplier. EDI can help reduce the cost of the paperwork by generating an order electronically and informing the supplier, who can stipulate delivery quantities based on how much inventory is sold versus how much is in the distribution center. This practice reduces the distortion of inventory information and leads to customers placing more frequent orders.

How VMI smooths the bullwhip effect

Often, when prices are low, retailers stock up products to proactively prevent demand uncertainty before any seasonal activity or price promotion. This technique can lead to the bullwhip effect, as well. However, now that many organizations are implementing vendor-managed inventory (VMI), both the shortage gaming effect and the order batching effect might be completely eliminated. VMI helps the retailer ensure that their end consumer gets the right quantity of stock. Having the right amount of stock isn’t just a financial advantage; it improves service level and increases repurchase intention.

With a VMI strategy, the supplier can track customer demand and manage the replenishment of orders and deliveries across many customers by receiving and implementing information related to the points of sale and forecast demand. Likewise, to overcome demand spikes, retailers are prepared to communicate information to their suppliers about promotions or other marketing campaigns to meet the requirement of the on-time delivery of any additional items.

The supply-and-demand challenge

When demand exceeds supply, a rationing of products can occur. If retailers are afraid that their supply will not be able to meet the desired demand, they start to overestimate their real needs. For example, sometimes customers are allowed to cancel orders when their real demand is fulfilled, which leads retailers to rely on a small amount of information and get confused about the buying pattern of consumers.

Mitigate the bullwhip effect

The following considerations can also help crack the bullwhip effect:

When a company has a suitable control system, it allows its trading partners to meet customer-targeted demand. Because of the system’s controls, the guessing game of predicting upcoming demand might be removed from the supply chains.
Accomplishing activities on time is critically important. Decreasing the amount of time spent can reduce the effect of the bullwhip. Each process and operation should be completed in the shortest amount of time possible; removing non-value-added activities goes a long way toward achieving the objective of leanness in an organization. It also means that the organization is providing the product to its customers on time, which is highly valuable for the business and customers alike.
Visibility is another effective method; when each stage of the supply chain is clear to the other, including understanding at what level inventories are required, then tasks can be transferred easily. With the help of an appropriate information system to optimize inventory, there should be a limited level with each object in the supply chain, allowing organizations to provide the right product, in the right place, at the right time.
Another reason for large order batches is the high cost of transportation. Full truckloads are often much more economical than less-than-full truckloads. One remedy to this problem is the use of a third-party logistics provider (3PL). 3PLs have many customers and can combine orders of different customers, which makes it possible to order less-than-full truckloads for a lower price.
Synchronization, such as through the tactic of continuous ordering, is another alternative. This process enables organizations to integrate all functions within a supply chain and enhances the visibility of orders and deliveries, eliminating the bullwhip effect.
The bullwhip effect can also be cracked by an everyday low-price policy (EDLP). With EDLP, companies do not offer discounts but promise a stable low price at all times, which saves customers the effort of searching for the best price and experiencing cost variability. In practice, many companies use EDLP strategy to compete with other firms, decrease price fluctuation, and encourage frequent buyers while increasing the sales volume of retailers.
Forecasting cannot be perfect every time; many businesses cope with this fact by keeping buffer stock, a practice that can create the bullwhip effect. To avoid this, supply chain practitioners need to accurately identify the forecasted demand and collaborate their planning and forecasting activities with each supply chain participant, which facilitates better visibility through shared information. This eventually reduces variability in demand uncertainty and production planning, cracking the bullwhip effect and leading to better forecasting and lower safety stock.

Digital strategies for cracking the bullwhip effect

While these methods are a powerful antidote to the bullwhip effect, supply chain is rapidly changing; sometimes, these strategies are not enough. Technology-driven solutions can make a big differences:

1. Internet-of-things (IOT) technology processes and collects information in real-time by connecting devices within a network. This magnifies the information base, increases information availability and enables visibility of material flows in the supply chain. With these advantages, the bullwhip effect can be reduced easily because the IOT provides quality feedback loops, which eventually reduces the time delay and overall processing time in manufacturing. Furthermore, operational information created under this system should be shared and available, which improves demand forecasting.

2. Cloud computing enables flexibility and scalability of infrastructure and software for the entire supply chain, aiding in the implementation of available information and sharing information in real time across and within the supply chain. All this digitalization leads to time reduction and information consistency, reducing the bullwhip effect.

3. Artificial intelligence is one of the most effective and promising technologies to reduce bullwhip effect. It is renowned for improving demand signals processing and reducing time delay in supply chain by inferring and noticing patterns in data, which ultimately cracks the bullwhip effect.

4. Blockchain facilitates traceability and transparency of data among all trading partners in a network. By providing access to demand data in the supply chain, it is easier for parties to reduce the bullwhip effect and improve their planning accordingly. This technology removes the need of an intermediary and allows distributed information to be shared directly with interested parties, reducing information asymmetry and increasing trust, thereby permitting high data integrity and robustness.

Digital transformation has shifted the structure of organizations in terms of effective and visible management of the supply chain. And, by creating meaningful information systems across each element of supply chain, it increases the smooth flow of material, leading to the satisfaction of real customer demand and maximized profit. That is great news as supply chain professionals continue seeking sustainable solutions to the bullwhip effect.

Editor's note: This article has been updated to reflect current industry trends. The original publish date was November 2021.

Beyond Assumptions: Take a Second Look to Save Lives

Sun, 10 Aug 2025 00:00:00 -0500

Editor’s note: Human trafficking is the trade of humans against their will, most commonly for sexual slavery, involuntary labor or commercial sexual exploitation. Recently, it has become an increasingly local problem — particularly the interstate sex trafficking of minors. Here, I speak with the executive director of Truckers Against Trafficking, Esther Goetsch, about the organization's mission to combat human trafficking, the unique role truckers play in the fight and the specific impact their efforts are having.

Rennie: What is TAT’s mission?

Goetsch: TAT stands committed to educate, equip, empower and mobilize members of key industries and agencies to combat human trafficking. One of our cofounders, Lyn Leeburg, put two and two together on this one: She came across an FBI statistic that showed how women and children were often being forced into prostitution at truck stops, and she recognized the incredible potential the trucking industry could have if drivers were educated and equipped on the issue — and she was right. Further, TAT recognized that a major cultural shift was needed away from the “she’s prostituting by choice” mentality toward the reality that, if you’re seeing a minor selling commercial sex or any sign of pimp control, you are witnessing sex trafficking. By changing hearts, minds and perspectives, we are working to raise up a transient army to help law enforcement in recovering victims and arresting traffickers and buyers. And that army continues to grow, with more than 2.2 million members of industries and agencies being TAT trained.

Rennie: What does your training involve?

Goetsch: We tell the backstories of the victims; we help them understand who really is in control out there; we humanize what is often objectified; and we empower them to take simple, but effective, steps to help. The training involves industry-specific videos that we ask commercial driver’s license instructors, safety directors and truck stop general managers to show their drivers and employees. We also have an accompanying wallet card and an app that provide the signs to look for, questions to ask and the actionable information law enforcement needs when someone reports a tip. Last year, we also created a corporate training video for company employees who aren’t on the road, so they can discover how human trafficking often intersects with their lives as well and the action steps they can take. We’d love to see every company decide that the carriers who move their products should be TAT trained.

Rennie: Tell me about the unique influence truckers have on the problem of human trafficking. And what is the specific role that they can play once they are trained?

Goetsch: At any given time, there are more professional drivers out on the road than law enforcement officers. These drivers also frequent places pimps will bring their victims, such as truck stops, rest areas, hotels and motels; they truly are the eyes and ears of our nation’s highways. We want them to take a second look and be aware of how traffickers seek to exploit the victims they sell. If a trucker is witnessing a crime in progress, they need to call 911 and report it immediately. Then, they need to call the National Human Trafficking Hotline and report it there as well. The hotline is also the perfect number to use when a trucker, or anyone, isn’t sure if what they’re looking at is really human trafficking. When you call, you’ll be connected 24/7 to a trained specialist who can help you ascertain the situation and contact law enforcement as needed. This is also the number to call to access victim services. Drivers can remain anonymous and confidential when calling the hotline, and we always tell them that it’s okay to be wrong. Better to find out everything is all right than let someone endure sexual slavery.

Rennie: What should people be on the lookout for with regards to sex trafficking?

Goetsch: Any time you see a minor selling commercial sex — and it doesn’t matter if she or he is smiling or saying that they like it or want to be out there — or you witness any kind of pimp control, call 911 and then the hotline. Pimp control often involves talk about making a quota, tattoos with signs of ownership, a car dropping off multiple girls or women to work the row, talk of a commercial company over the CB radio, drug addiction, bruising, lack of identification, or someone being unfamiliar with his or her surroundings. Call law enforcement and the hotline immediately, and report what you see. The key for all of us really is taking a second look and examining our assumptions. If we think someone is prostituting willingly, then that’s all we’ll ever see.

Human trafficking around the world

Induced by force, fraud and coercion, human trafficking is a modern form of slavery that is happening in record numbers. According to the United Nations, human trafficking is one of the most serious human rights violations of our time, affecting every country in the world. Human trafficking is also among the most profitable criminal enterprises, generating an estimated $236 billion in illicit profits each year. Traffickers most often target vulnerable populations, such as runaways, the poor, foster children, sufferers of warfare or natural disasters, as well as minority and LGBTQ+ populations.

There are 50 million people in modern-day slavery globally, which includes 27.6 million victims of human trafficking.

77% of trafficking victims are trapped in forced labor in the private or public sector.

23% of victims are in forced commercial sexual exploitation.

Nearly 4 out of 5 sex trafficking victims are women or girls.

Globally, 3.3 million human trafficking victims are children.

It is common practice to bar code or tattoo victims as commodities for purchase.

Sources: International Labour Organization, United Nations, United Nations Children’s Fund and the Polaris Project

Join the fight

To report suspected trafficking, call the National Human Trafficking Hotline at (888) 373-7888 or text “INFO” or “HELP” to BEFREE (233733) in the United States. In Canada, call (833) 900-1010 for the Canadian Human Trafficking Hotline. Never approach traffickers; allow law enforcement to deal with the situation and recover victims. Victims of trafficking can call the National Human Trafficking Resource Center at (888) 373-7888 or the National Sexual Assault Hotline at (800) 656-HOPE. To get involved with TAT, send an email to info@tatnonprofit.org.

Your Order Delivered: Robotics Tech Advancements in Fast Food

Fri, 08 Aug 2025 00:00:00 -0500

In some ways, robots are already redefining the supply chain. In busy warehouses, they’re lifting heavy loads and translating orders into new languages in real time. They're ideal for making last-mile package deliveries. And now, robots have made the jump to food delivery — and consumers are hungry for all that offers.

Restaurants receive billions of orders each year through third-party food delivery apps, reports The Wall Street Journal, but many customers are still disappointed in the results: “Couriers juggle multiple deliveries, resulting in cold burritos. Drinks are spilled, fries are shorted. Delivery charges grow ever higher, as do suggested tips and menu prices.”

That’s one reason why the addition of autonomous robots in the food delivery space is so exciting: They cause less traffic congestion, increase the speed of service and improve efficiency, explains Supply Chain 247. And if you’re like me and crave that special late-night snack but don’t want to drive, White Castle’s Chicago location is testing out autonomous delivery with small, battery-powered sidewalk-traveling robots developed by Coco Robotics. Of course, building robots for outdoor use in Chicago requires the ability to navigate snow and slush, as well as cracked sidewalks. But it seems these robots are up to the challenge.

Notes The Journal: At first, delivery robots had human guides powering them as they progressed down the street toward their intended destinations, but they now operate “autonomously in most situations, as machine learning helps them master repeat routes. Lasers on the robots assess how far away people and objects are and help determine the best routes for the service area.”

Plus, they’re fitted with multiple cameras to avoid sidewalk collisions, and one camera keeps an eye on the food to ensure it stays upright. Customers can track the delivery robots in their app and get a notification when their order arrives. To retrieve their food, diners use the app to unlock a hatch on the robot, which then continues on its route.

But even if they’re moving autonomously, robots can’t do it alone: At White Castle, they’re supported by the tech platform Checkmate to sync orders from Uber Eats, the company supporting the robot program, with the in-store point-of-sale system ensuring staff can track and manage operations successfully.

Of course, helping employees build the skills necessary to control those robots is always a good investment. “It advances supply chain organizations by keeping workers mentally engaged, increasing their productivity and filling ongoing talent gaps,” writes ASCM Editor in Chief Elizabeth Rennie in a recent blog post. “This can reduce operational costs, boost efficiency, avoid costly mistakes and ultimately transform their operations.”

Technology innovation at your fingertips

The adoption of robotics is just one of the ways that supply chain is innovating to meet the needs of customers. Be at the cutting edge of the latest in AI, advanced analytics, cybersecurity, additive manufacturing and more with ASCM’s Supply Chain Technology Certificate. Equip yourself with the skills to enhance transparency, anticipate disruptions, streamline operations, reduce costs and accelerate delivery through data-driven insights and automation.

Want to get your entire team certified? We offer specialized training for groups of any size. Contact us today to learn more about the exciting possibilities of team training.

How Trucking's Driver Shortage Affects Your Business

Sat, 02 Aug 2025 00:00:00 -0500

The truck driver shortage is a critical issue affecting the entire supply chain. The United States alone is short more than 80,000 drivers, a number projected to double in the coming years. This isn't just a minor inconvenience; it's a fundamental challenge to how freight moves across the country.

Financial and operational challenges

The talent gap creates a domino effect of financial and operational pressures. Freight is waiting longer to be transported, leading to delays and missed deadlines. In response, companies are seeing rising costs, particularly in labor, as they try to attract and retain a limited pool of talent. The convergence of historically high turnover, veteran drivers aging out and surging e-commerce demand has created a perfect storm that shows no sign of clearing in the near future.

The impact ripples far beyond late deliveries. For supply chain organizations, it damages established relationships with customers and makes it difficult to attract new business. Internally, human resources departments face increased workloads and higher spending on recruitment, especially for companies that offer costly subsidized training programs.

The talent gap also creates a cascade of safety and risk management issues that can have severe consequences. Companies may be forced to rush new drivers into roles, sometimes before they've fully mastered the job's complexities and safety protocols. This can lead to a higher rate of accidents and on-the-road infractions. Additionally, the pressure to keep up with freight demand can lead to driver fatigue and skipped maintenance checks, creating a cycle of risk.

5 ways to tackle the truck driver shortage

To stay competitive and build resilience, transportation and logistics companies must urgently address these challenges. The following proven strategies can help address many issues associated with the trucking industry driver shortage:

1. At a high level, transportation companies need to consider many factors when recruiting new drivers, as interests, preferences, priorities and needs vary quite a bit from previous generations. As older drivers exit the workforce, the methods that attracted them may no longer be effective. While pay is always a significant factor, it’s far from the only thing that can convince a newly trained driver — or an untrained person interested in learning the trade — to commit to working for the company.

2. Work-life balance is a very important consideration, particularly for young professionals, so offering positions with a significant amount of time at home will help ease the burden of forever being on the road.

3. Adjusting the amenities and perks offered to drivers is another proven strategy. While it may seem minor, a change from in-cab satellite TV to streaming services such as Netflix or Hulu on tablets and mobile Wi-Fi can enhance the appeal.

4. Data analytics platforms and tools can transform hiring, just as they’ve created significant improvements for everything from operational efficiency to customer engagement. Identifying, quantifying and analyzing the campaign that attracted a driver — as well as their progress, performance and risk factors — can provide valuable insights into which efforts are working. Earlier upstream data analysis can improve retention, utilization, risk and efficiency. Data analytics also allow companies to derive an optimal cost-per-mile metric that finds the sweet spot between driver compensation and other cost drivers.

5. Search engine optimization is another factor to consider. Tracking metrics such as click-through rate, hit rates on job boards and conversions can help businesses develop a better understanding of where high-value recruits come from. Moreover, predictive analytics can shed light on how to identify prospects by leveraging valuable investment dollars to ensure the best return on investment.

Transportation and logistics companies that have the solutions in place to identify strong driver prospects enjoy a variety of benefits. These include better conversion rates, healthier company cultures, longer driver tenures and achievement of key financial metrics. In terms of financial metrics, effective recruitment identifies safer and more reliable drivers, which limits costs tied to insurance-based claims and mitigates damaging litigation. Business leaders must recognize the seriousness of the situation and make creative adjustments that allow them to be more competitive and successful in their recruitment and retention efforts.

Equip your team with the skills to overcome the trucking industry driver shortage with ASCM's Certified in Logistics, Transportation and Distribution (CLTD) program. Learn more and get your team certified today.

Editor's note: This article has been updated to reflect current topics and trends. The original publish date was October 2021.

Supply Chains Brace for Tariff Impacts

Sat, 02 Aug 2025 00:00:00 -0500

Before President Trump even took office for the second time this January, he was threatening to impose sky-high tariffs on all U.S. trading partners, no matter the existing relationship or perceived trade deficit. After months of announcements and delays, the United States has now outlined a framework for several major trade agreements — none quite as high as the initial threats, but every one still significant for supply chains.

President Trump’s latest move to "upend global commerce" is set to raise tariffs on more than five dozen countries, if they don't reach deals with the United States within a week, The New York Times reports. "Syria, Laos and Myanmar were handed among the steepest tariff rates of 40-41%," the article states.

Late last week, the United States and Japan agreed to 15% reciprocal tariffs on Japanese exports, reports CNN. Further, the 15% tariffs on both automobiles and car parts will put Japan at an advantage over other major vehicle exporters, which face a 25% levy on automotive sector exports. Japan will also invest $550 billion in the United States “in the form of equity and loans to support Japanese business investments in key fields such as pharmaceuticals and semiconductors,” CNN continues.

Meanwhile, Trump met with the commission of the European Union to agree to a “15% import tariff on most EU goods,” according to Reuters. Trump also told reporters that the “EU plans to invest $600 billion in the United States and dramatically increase its purchases of U.S. energy and military equipment.” Notably, the 15% rate doesn’t apply to all goods: The United States will keep the 50% tariff on steel and aluminum in place. And there will be no tariffs from either side on aircrafts and aircraft parts, certain chemicals, specific generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials, Reuters notes. The EU agreement follows an earlier deal with the United Kingdom for a flat 10% tariff, meaning the UK may benefit from the tariff rate the EU was allotted, explains the BBC.

Also this week, President Trump extended the existing tariffs with Mexico, America’s largest trading partner. As he pauses on higher tariffs, the status quo will continue, meaning goods from Mexico will be taxed at 25%. However, items that are compliant with the United States-Mexico-Canada trade deal will be exempt, barring certain sectoral tariffs.

Finally, the United States and China agreed to extend their tariff pause for another 90 days to allow both parties more time to negotiate, per the AP. U.S. Treasury Secretary Scott Bessent told the outlet that the two sides need to “de-risk” certain industries, including rare earths, semiconductors and medicines, and encourage more domestic manufacturing. Until the new agreement takes shape, the United States maintains a 30% tariff on China; China retaliated with a 10% tariff on the United States.

Barring many years of significant investments in U.S.-based manufacturing, the tariff policy in China is likely to increase production in emerging markets, such as Vietnam and India, as a means of “structural reallocation.” For example, “Apple now sources 15% of its iPhones in India, a figure expected to rise to 30% by 2026.” India’s tariff rate on electronics tips the scales at 0%. And the country’s semiconductor, AI infrastructure and solar PV sectors are also gaining traction. For its part, Vietnam also boasts a 0% tariff rate on electronics, and Apple plans to shift 65% of AirPods production there by 2025.

Tools for a changing trade landscape

To thrive in these uncertain times, supply chain organizations must prioritize talent development and employee education, fostering a workforce capable of strategic diversification and rapid adaptation to shifting trade policies. ASCM has numerous resources:

The Chain Podcast Tariff Predictions: I spoke with supply chain expert Alastair Charatan and ASCM’s Douglas Kent to explore the global trade landscape and how supply chain organizations can navigate the ebbs and flows of tariffs.

Optimizing Sourcing and Supplier Relationships in a Tariff-Risk Landscape: This four-part webinar series investigates strategic sourcing and supplier management within the critical new context of tariff mitigation.

ASCM’s Tariff Tracker: Stay in the loop with the latest supply chain tariff updates. Our weekly curated collection brings you the most important news from global media sources.

Finally, be sure to prepare your teams at CHAINge: North America, the premier educational gathering for supply chain professionals. The immersive event will take place September 9-10 in Columbus, Ohio. Register today.

Strategies to Address Transportation Industry Challenges for Fleet Managers

Fri, 01 Aug 2025 00:00:00 -0500

The heavy-duty truck transportation industry continues to grapple with a host of challenges, including the persistent truck driver shortage, complex logistical challenges and significant asset management hurdles. Just as a transportation company meticulously evaluates a new vehicle to ensure it fits operational needs, leading organizations are realizing they must now apply this same approach to their internal strategies — in other words, they must be spec'ing business practices trucking to engineer success.

Spec’ing for driver recruitment and retention

One of the most pressing questions facing the logistics industry is: Is there a truck driver shortage? The answer is a definitive yes. The trucker shortage remains a top concern, with the International Road Transport Union forecasting that more than 7 million truck driver positions could be unfilled by 2028. This reality makes truck driver recruitment and retention a mission-critical priority.

To compete for and retain talent in this tight market, companies need to re-evaluate their core values. This means building a stronger trucking company culture and safety program that actively involves drivers. Top-performing fleets are realizing they can reduce turnover by listening to their drivers, including them in conversations about safety initiatives and polling them for input on new equipment. This approach is key to building a positive company culture for truck driver retention.

To attract a new generation of drivers, companies must also stay ahead of trends. This includes adopting a fleet replenishment plan shorter trade cycles to get newer, safer and more advanced equipment on the road. These modern vehicles not only help with safety initiatives to reduce truck driver turnover, but also cater to a younger workforce that values technology and work-life balance.

Spec’ing for sustainability and financial health

The rising concern for climate change among younger generations directly influences trucking industry challenges and recruitment. Fleet sustainability and ESG goals are no longer just a trend; they’re a necessity for attracting and retaining talent. Fleets are responding by implementing policies that prioritize both people and the planet, such as optimizing vehicle specifications for fuel efficiency with lighter components that also reduce maintenance. These actions support social criteria by providing newer and safer trucks, which helps to attract a more diverse and resilient pool of drivers.

While sustainability is a major business strategy, paying close attention to the bottom line is still crucial. That's why many organizations are focusing on optimizing residuals for fleet asset management. Fleets that operate on a three-to-five year life cycle strategy can effectively lower their total cost of ownership and enhance a truck’s residual value.

Spec’ing your long-term strategy

Companies are increasingly leveraging data analytics for fleet management to improve their procurement processes. This data often shows that flexible financing options are a better fit than rigid, long-term commitments.

Strategies such as sale-leaseback financing trucking allow companies to satisfy short-term needs without sacrificing long-term goals. Critically, the cost savings from such options can give companies more capital to use for driver salaries or bonuses, which is a powerful tool in the fight against the trucking industry driver shortage.

In the face of so many external pressures, it's clear that a company's internal procedures are their best defense. By carefully spec'ing their business practices, transportation companies can mitigate risk and set their operations on the road to success.

Equip your team with the skills to overcome transportation and logistics challenges with ASCM's Certified in Logistics, Transportation and Distribution program. Learn more and get your team certified today.

Master the Modern Global Supply Chain

Mon, 28 Jul 2025 00:00:00 -0500

The concept of a truly global supply chain emerged from decades of increasing interconnectedness, where businesses sourced raw materials, manufactured components, assembled products and distributed goods across continents. This globalization was largely driven by the pursuit of efficiency, cost reduction and access to new markets.

Today, the global supply chain represents a complex web of cross-border flows, partnerships and intricate logistics that underpin modern commerce. B2B industries heavily affected by these dynamics include manufacturing, automotive, electronics, retail supply, logistics, consumer packaged goods and pharmaceuticals — all of which rely on seamless international movement of goods and information.

Understanding the modern global supply chain

At its core, globalization in the context of supply chain management means the worldwide integration of production and distribution. It enables companies to leverage specialized expertise, lower labor costs and diverse resources from around the world. This strategy, while highly efficient in stable times, has also created intricate dependencies that are now being tested. As explored in a previous ASCM Insights blog post, 5 Key Points in Global Trade: Navigating an Evolving Landscape, macro trends are continually reshaping this intricate system.

Global supply chain organizations key challenges

The relentless pursuit of hyper-efficiency, while beneficial in many ways, has inadvertently exposed profound vulnerabilities within global supply chains, creating a landscape fraught with intricate challenges. Geopolitical instability and ongoing trade wars frequently create unpredictable operating environments, compelling businesses to rapidly re-evaluate their sourcing locations and strategies. Compounding this uncertainty is the escalating impact of climate change and extreme weather events, which increasingly disrupt critical transportation routes, damage essential infrastructure and affect agricultural yields, leading to widespread raw material shortages and debilitating delays.

Furthermore, persistent labor shortages and dynamic workforce shifts — from essential port workers to truck drivers and skilled manufacturing personnel — consistently impede throughput in key regions, adding pressure across the entire network. These factors are exacerbated by pervasive inflationary pressures, as rising raw material and, critically, surging transportation costs squeeze profit margins across nearly all sectors, making the efficient and cost-effective movement of goods more challenging than ever.

Underlying many of these issues is a persistent lack of visibility, with many organizations still struggling to achieve real-time, end-to-end oversight, which makes it incredibly difficult to detect disruptions early, respond swiftly or even accurately track inventory in transit.

Emerging opportunities for global supply chains

Despite the formidable challenges, current global supply chain trends also present unprecedented opportunities for B2B leaders willing to innovate and adapt:

The increased adoption of digital tools provides unprecedented insights. Leveraging big data, internet-of-things sensors and advanced analytics can unlock new efficiencies and predictive capabilities.

From intelligent warehouses to autonomous vehicles, AI and automation are transforming operations; reducing reliance on manual labor; enhancing precision; and enabling faster, more flexible responses. Our recent discussions on AI in the cold chain highlight this shift.

Moving beyond single-source reliance, companies are actively exploring alternative sourcing strategies such as nearshoring and reshoring, to build redundancy and reduce geopolitical risk. This decentralization helps mitigate potential disruptions and creates more robust networks.

Growing consumer and regulatory pressure for sustainable practices is pushing companies to optimize routes, reduce waste and build circular supply chains, often leading to new efficiencies and competitive advantages.

The complexity of today's environment elevates the strategic importance of supply chain managers. They are no longer just operational executors but critical decision-makers, architects of resilience and drivers of digital transformation.

Building resilience with SCOR

Navigating this dual landscape of challenges and opportunities demands a structured, systematic approach to building resilience. This is where the SCOR (Supply Chain Operations Reference) framework proves invaluable for B2B enterprises. SCOR offers a common language and methodology to analyze, optimize and standardize supply chain processes across planning, sourcing, making, delivering, returning and enabling functions.

By applying the SCOR framework, organizations can:

Identify current capabilities, pinpoint vulnerabilities and benchmark best practices in global supply chain risk management.

Implement consistent processes that enhance visibility and control across complex, multi-tier B2B networks.

Systematically integrate new digital technologies into defined processes, ensuring they truly enhance performance and resilience.

Provide a framework for evaluating and integrating new suppliers and production locations efficiently and effectively.

Identify critical skill gaps and build a workforce capable of managing increasingly diversified and digitally driven supply chains.

SCOR helps B2B companies move beyond reactive measures, enabling them to proactively design, operate and manage real-time resilient supply chains that can withstand disruptions and capitalize on new market dynamics.

The future of global supply chain leadership

The contemporary global supply chain is a dynamic ecosystem demanding continuous adaptation and strategic foresight. For leaders and supply chain managers in B2B industries, the focus must shift from merely optimizing costs to building inherent resilience and agility. The unprecedented challenges are simultaneously driving transformative opportunities for those willing to embrace new technologies, diversify their networks and invest in a systematic approach to supply chain excellence. This is the moment to redefine what's possible, ensuring your supply chain doesn't just survive, but thrives in the face of tomorrow's uncertainties.

Ready to transform your B2B supply chain for real-time resilience? Learn how ASCM's SCOR framework can provide the systematic methodology you need to navigate complexity and achieve sustainable competitive advantage. Explore ASCM’s B2B solutions and SCOR offerings today.

5 Reasons to Explore Alternate Suppliers

Fri, 25 Jul 2025 00:00:00 -0500

When manufacturing and distribution businesses engage with bankers, the conversation often zeroes in on customer concentration. This is undoubtedly a significant risk, as a company's future sales, cash flow and profits can become overly dependent on a handful of key buyers. However, an equally critical vulnerability often flies under the radar: single-source supplier risk.

Businesses operate as intricate, interdependent networks within the broader economy. No entity is entirely self-sufficient; every business acts as a supplier, and every business relies on its own suppliers for essential raw materials and components. Historically, there's been a strong push toward working with fewer suppliers, driven by clear benefits such as fewer contracts to manage, better supplier responsiveness, increased buying power and enhanced quality through greater leverage.

Still, supplier consolidation can create significant risk. As sourcing and procurement professionals still grapple with the echoes of the pandemic — marked by unprecedented supply disruptions, uncertain product availability and heightened banking scrutiny — it's imperative to critically evaluate these specific vulnerabilities. This inherent fragility can directly contributes to stockouts of basic and essential consumer products. Proactive strategies are essential to minimize supply chain risk and keep operations resilient.

Understanding the risks of single sourcing

While the appeal of consolidating suppliers is strong, this approach introduces significant risks of single sourcing that demand careful consideration and proactive mitigation:

Pricing: Reduce single-source-supplier risk to your bottom line. Conventional wisdom says, the more we buy, the lower the price will be. But if we’re always buying from the same vendor due to single-supplier dependency, how do we truly know that we’re getting the most competitive price? Even in a sole-sourcing situation, it’s critical to actively ensure the prices you’re paying remain competitive. Without alternatives, your sole supplier has significant leverage to increase costs, directly affecting your margins. There should be a regular cycle for going to the market to identify any available alternatives and maintain pricing pressure.
Design: Mitigate design lock-in. Some companies design their own products; some contract with other companies to handle design and manufacturing. If your designs are inextricably tied to a single manufacturer, you are severely committed in your purchasing decisions. This single-supplier dependency creates a significant lock-in, making it difficult and costly to switch. Having viable alternative options that you can shift to, should the situation with your primary source change, provides crucial protection against a relationship turning sour or a supplier facing unforeseen design limitations.
Risk: Avoid the catastrophic impact of a single-supplier failure. What happens if your sole supplier suddenly runs into financial trouble and is unable to supply for you? You might find yourself becoming a reluctant funding source for the supplier, further deepening your dependency. How long would it take you to find a new supplier, vet the company for quality and ramp up production?
Delivery: Limit single-source bottlenecks and delays. Transportation bottlenecks can stall deliveries. In the case of imports, unforeseen problems such as customs holds, tariff issues or container shortages can lead to severe delays. Without an alternative, you could find yourself waiting helplessly for that delayed delivery, watching as your nervous customers consider replacing you, all because of your single supplier dependency.
Production capacity: Lessen vulnerability to a sole supplier's priorities. If you’re not your supplier’s only customer, what happens if another customer has needs that dominate production to your detriment? This is a key concern with sole-supplier risk. When you have a critical need and your inventory has hit your safety stock, how fast do you get a response? If your supplier's capacity is primarily allocated to a favorite or largest customer, you may end up waiting in line, facing costly delays and lost opportunities due to your single supplier dependency.

Preparing for the unexpected is not just good practice; it's a fundamental requirement for maintaining resilient operations in today's unpredictable global economy. Equip yourself with the expertise to identify, assess and mitigate supplier vulnerabilities with the ASCM Procurement Certificate.

Editor's note: This article has been updated to reflect current supply chain topics and trends. The original publish date was October 2121.

Robots Reshape Supply Chains, Redefine Careers

Fri, 25 Jul 2025 00:00:00 -0500

From intricate packing to lifting heavy loads, robots are revolutionizing supply chain operations, delivering big efficiency gains and forging safer working environments. As robots become more integral in our global networks, many roles across the supply chain are poised to require advanced technology expertise and exciting new leadership opportunities.

In fact, a new Gartner report predicts that one in 20 supply chain professionals will manage robots, rather than humans, by 2030. The potential benefits of this shift are many: First, OSHA data reveals that a one-standard-deviation increase in robot exposure (1.34 robots per 1,000 humans) minimizes work-related injury rates by 1.2 injuries per 100 full-time employees. And research from the National Safety Council affirms that robots significantly reduce musculoskeletal disorders and exposure to dangerous environments, leading to ongoing and substantial cost savings in worker compensation and lost productivity. The rise in robot adoption between 2005 and 2011 alone saved an estimated $1.69 billion annually in injury-related expenses.

Beyond these advantages, ASCM Editor in Chief Elizabeth Rennie notes in her investigation of robots and the supply chain professional: “Intelligent robots are transforming supply chains. Robots free human employees from mundane, repetitive tasks and empower them to concentrate on core business objectives. This advances supply chain organizations by keeping employees mentally engaged, increasing their productivity and filling ongoing talent gaps.”

Indeed, robots can’t do the work alone, so they need trained people to program and guide them and ensure they’re moving safely through the workplace. With this in mind, Gartner suggests several ways that supply chain organizations can support the transition to managing mobile robots:

Develop a dedicated robotics competency center for driving successful adoption across the organization.

Create a holistic approach to robotics by outlining a robust automation strategy.

Consider the entire robotics journey, from knowledge gathering to deployment, support and maintenance.

Implement governance to address the robotics-selection process, contract service-level agreements, various pricing mechanisms and cybersecurity standards.

One company leading the way in robotics is Ulta Beauty, which has transformed its supply chain to handle surging online sales. Vice President Heather Lane and I discussed this initiative on ASCM’s The Chain podcast. She explained her company’s application of autonomous mobile robots (AMRs) that travel alongside associates, taking on the heavy lifting by replacing pushcarts to improve safety and ergonomics. Plus, AMRs offer another unique benefit: the ability to pre-program them with up to 26 preferred languages for Ulta’s diverse teams.

Mastering tech in supply chain

As advanced technologies become increasingly central to our global networks, understanding how to effectively manage them is essential for career growth and operational success. Prepare yourself and your teams to lead the future of automated supply chains with ASCM’s Supply Chain Technology Certificate. This program is a proven way to unlock new opportunities and become an indispensable asset in the age of intelligent supply chains.

5 Food Supply Chain Advancements with AI

Thu, 24 Jul 2025 00:00:00 -0500

The transformational benefits of artificial intelligence (AI) go well beyond the technology industry. Food manufacturing and the consumer-packaged goods supply chains are no exception to the benefits of this technology. AI enables producers to optimize their operations by improving quality control and safety, enhancing efficiency, and so much more. Following are five key benefits:

Supply chain visibility and traceability. Maintaining and building consumer trust while ensuring food safety is critical for manufacturers. Internet of things (IOT) devices equipped with AI-powered end-to-end traceability give consumers access to product origin, processing and transportation information. Additionally, blockchain technology along with AI protects data integrity, helps ensure immutability, and minimizes the risk of fraud and counterfeit products entering the marketplace. AI analytics also markedly enhance supply chain transparency and can boost response time to issues. Analytical insights made by AI can help supply chain professionals identify unauthorized substitutions or even unauthorized suppliers.

2. Boost production processes. Machine learning (ML), a subset of AI, can be used to analyze vast amounts of data collected from historical records, sensors and production lines in the manufacturing facility. With this large dataset, ML algorithms can identify patterns to optimize production parameters, leading to a better manufacturing process and efficiency improvements. Furthermore, AI algorithms can improve product turnaround time, reduce costs and increase productivity by speeding production schedules, inventory management and supply chain logistics. AI can also enhance predictive maintenance to ensure that equipment is being used to maximum efficiencies and productivity.

3. Advance safety and quality control. Undoubtedly, gaining consumer trust is paramount for a company's success – and earning that trust starts with meeting consumer expectations and federal regulations by ensuring food safety and prioritizing quality control. Systems enabled with AI technology can help users detect anomalies and deviations in real-time to decrease the risk of spoiled or faulty products on store shelves. Moreover, with AI's computer vision technology, manufacturers can perform automated visual inspections, leading to the highly accurate identification of defects and foreign objects in a product. AI algorithms can also monitor critical control elements, such as temperature and humidity, to protect storage conditions and avoid costly mistakes like food spoilage. Documentation is also critical and is frequently reviewed by government agencies and regulators. AI can be used to ensure that documentation is continuously updated meeting the current standards.

4. Product development and personalization. Consumer preferences are changing almost daily. People will always want new and innovative products. With AI, producers can get improved information about what their consumers want. Further, they can personalize product selection for customers. By using consumer data, ML algorithms can create recommendations for each individual, tailored to their unique preferences. Another benefit of AI is its chatbots and virtual assistants: These virtual concierges use ML algorithms to learn about each customer and help them make more informed choices based on their particular needs. AI can also be used to learn about flavor preferences, ingredient combinations and current trends. Manufacturers can then leverage these insights to create a product that customers truly desire.

5. Sustainability. As consumer goods continue prioritizing sustainability, reducing food waste is becoming a significant priority. AI offers a new way to achieve this goal, starting with predicting demand more accurately. Companies need to look at more than just historical sales data to increase accuracy. AI algorithms can handle more data than older planning methods, making it easier to include more data, such as customer preferences and weather patterns. Improving demand forecasts will lead these businesses to better inventory management and production planning. And these improvements mean less overproduction and excess inventory, ultimately decreasing food waste. Furthermore, AI can help streamline distribution processes. By analyzing trends and data of the current marketplace, the technology enables manufacturers to make more informed decisions to optimize routes by reducing transportation and fuel consumption, leading to a sustainable future.

Solving today's CPG challenges

Using AI today can lead to an optimized future for the consumer goods industry. AI technology will only continue to advance and will pilot companies that capitalize on the solution to new heights of success. To stay ahead of ever-changing customer demand and create a safer and more sustainable food chain, supply chain leaders must welcome the innovative possibilities of AI.

AI continues to grow in importance with supply chain organizations. Download our Top 10 Trends for 2025 to learn why AI is number one.

Editor's note: This article has been updated to reflect current topics and trends. The original publication date was June 2024.

Strategic Sourcing for Volatile Raw Material Supply Chains

Tue, 22 Jul 2025 00:00:00 -0500

Supply chain organizations are increasingly recognizing the critical importance of effective raw material sourcing. Many are discovering that it demands a proactive approach that goes beyond a singular solution. Instead, a composite strategy that blends multiple sourcing and inventory practices offers the best short-to-midterm resilience.

Although onshoring and nearshoring are often valuable strategies, they can also inadvertently strip supply chains of necessary buffers during unforeseen disruptions. Likewise, overemphasis on cost models can overshadow comprehensive risk assessments related to single-country sourcing, extended networks and congested logistics. The root cause of many ongoing raw material shortages and production halts often traces back to sole-sourcing strategies for mission-critical items.

How top procurement teams optimize supply

To mitigate future oversight, a deliberate effort to multisource critical items is often useful, particularly when it is combined with varied inventory models. These strategies, best used in combination, offer procurement teams a balanced approach to risk:

Strategic inventory buffers: While not a standalone solution, maintaining a targeted reservoir of raw materials or finished goods can serve as a short-term buffer against demand-side uncertainty. This requires sophisticated planning to avoid obsolescence and manage network constraints.
Consignment approaches for strategic raw material sourcing: Using consignment inventory provides a secure supply of critical components without immediate capital outlay. Relationship-based agreements with defined minimums and volumes create mutual benefits, reducing outage costs.
Diversified sourcing: When sourcing raw materials, aim to spread risk across multiple suppliers, distributors and even countries. While potentially incurring higher costs, it significantly limits supply chain vulnerability. A good rule of thumb suggests no single supplier for a critical raw material should exceed 80% of total requirements.
Localized sourcing: Gradually increasing purchases from domestic providers helps cultivate more flexible and responsive supply sources. Though not always the cheapest, sourcing raw materials locally offers significant lead-time advantages, boosting throughput and mitigating logistical delays. This represents a foundational step towards reshoring.
Leveraging distributors: Tapping distributors as secondary or flexible supply sources offers immediate benefits through their extensive knowledge of international commerce, prebuilt supply chains and inventory. Strategic partnerships with distributors quickly enhance source diversity.

The business case for expert sourcing

Justifying these crucial shifts requires a clear return on investment and a compelling business case for finance and senior leadership. Procurement professionals must frame new strategies not merely in terms of immediate price, but by emphasizing reduced risk, improved security of raw material supply and long-term cost stability. These benefits are vital for overall business continuity and sustained profitability in an unpredictable world.

Building raw material resilience

Recent global challenges have unequivocally exposed the flaws in sole-sourced and offshored supply chain models. The supply chain community must now evolve a new best practice that embeds a robust risk management framework for sourcing raw materials. This involves proactively identifying supply chain risks; partnering with multiple, globally diverse providers; and thoughtfully exploring local manufacturing and varied inventory storage opportunities.

Gain expertise and learn how to justify long-term supply stability with the ASCM Supplier Relationship Management Certificate.

Editor's note: This article has been updated to reflect the current supply chain landscape. The original publication date was November 2021.

The Red Queen Hypothesis for Dynamic Supply Chain Team Performance

Mon, 21 Jul 2025 00:00:00 -0500

In evolutionary biology, the Red Queen Hypothesis posits that organisms must constantly adapt and evolve — not merely for competitive advantage, but to survive while others around them are also evolving. Named after a character in Lewis Carroll’s Through the Looking-Glass, the hypothesis suggests that “it takes all the running you can do, to stay in the same place.” Though originally developed to explain coevolution in biological systems, this concept has striking relevance for understanding modern team dynamics — especially in fast-paced and complex environments where significant coordination among teammates is required.

The Red Queen Hypothesis can illuminate the inner workings of supply chain teams, emphasizing the necessity of continuous adaptation, considering dynamics of intra- and inter-team coordination and the risks of stagnation in organizational ecosystems. The principles apply to teams of all sizes, structures, functions and industries.

Continuous adaptation within teams

Supply chain teams operate within ever-shifting internal and external environments — organizational restructuring, technological change, evolving customer expectations and workforce turnover all exert continuous pressure. In this context, teams resemble organisms in a coevolutionary race. Their ability to maintain effectiveness depends on constantly adjusting goals, roles, communication patterns and processes.

From a Red Queen perspective, adaptation is an ongoing process. A high-performing team that rests on its laurels — continuing with the same workflows or decision protocols in a changing context — risks degradation. Team members must therefore engage in continuous learning, feedback loops and experimentation to maintain alignment and productivity. Psychological safety and learning culture play critical roles in enabling this ongoing evolution.

Coevolution and competition across teams

The Red Queen Hypothesis emphasizes that progress is relative: An organism's fitness must improve in tandem with its competitors' adaptations. Similarly, in organizational ecosystems where multiple teams coexist — whether in business, academia, government or other domains — one team’s innovations can create new baselines for performance.

Consider software development teams in a competitive tech company. If one team adopts a novel approach that dramatically accelerates deployment, it raises expectations across the entire organization. Peer teams must evolve in response, adapting tools, skill sets or collaborative practices. Otherwise, they risk falling behind in both perception and performance.

In this context, collaboration and competition become intertwined. Teams may share knowledge and align toward common goals, but they are also competitively assessed for limited resources as well as special recognition and influence. The Red Queen lens helps explain the intense, competitive dynamics that arise from these dual pressures, highlighting why even well-functioning teams cannot afford to stand still.

Feedback loops and escalating complexity

A further insight from the Red Queen Hypothesis is the role of feedback loops in escalating complexity. When supply chain teams respond to external threats or opportunities by upgrading their capabilities, they inadvertently raise the bar for others. This leads to a cycle of mutual adaptation that can generate significant organizational transformation — but also rising complexity.

In team dynamics, this might manifest in increasingly sophisticated workflows, specialized roles or multilayered decision-making structures. While these adaptations can confer short-term benefits, they also risk overengineering and fragility if not guided by purpose. Understanding Red Queen dynamics encourages supply chain decision-makers to manage complexity consciously, prioritizing modularity, transparency and agility to prevent evolutionary dead ends.

Implications for leadership and team design

From a supply chain leadership perspective, applying Red Queen thinking to team dynamics reinforces the importance of designing teams for resilience rather than static excellence. Rather than optimizing for a single “ideal” configuration, supply chain executives should foster adaptability by:

Encouraging cross-training and flexible roles

Fostering common perspectives and practices for team learning

Supporting lightweight, iterative planning cycles

Empower teams to make decisions locally and share leadership responsibilities

These design principles help teams respond more fluidly to environmental shifts and keep pace in the evolutionary race. Supply chain organizations should also pay attention to external signals and emerging trends, ensuring that teams are not adapting in isolation but are attuned to broader system dynamics.

Red queen fatigue

An important aspect of the Red Queen Hypothesis to keep in mind is the psychological toll of constant adaptation. Just as organisms in a coevolutionary race expend enormous energy simply to maintain their niche, teams in perpetual motion can experience fatigue, stress and disengagement. In a supply chain context, perhaps there are excessive pivots, unclear priorities or the erosion of work-life balance.

If these things happen, they must be tempered by periods of consolidation and rest. High-functioning teams match the pace of change with rhythms that allow for reflection, bonding and recovery. Mitigate Red Queen fatigue by setting clear boundaries, celebrating progress and periodically simplifying processes that have grown overly complex. Doing so ensures supply chain organizations are well-positioned to cultivate resilient, learning-oriented teams. The race never stops; but with awareness, strategy and care, teams can thrive while keeping pace in the evolutionary game.

Ready to empower your team for continuous adaptation and sustainable resilience? Discover ASCM's team learning and development solutions today.

Apple Drives U.S. Rare-Earth Production

Fri, 18 Jul 2025 00:00:00 -0500

The benefits of making goods near the people who use them are many — from reducing environmental impact to avoiding political instability. As the historical centralization of manufacturing in Asia exposed vulnerabilities in global supply chains, this fragility, coupled with ongoing geopolitical shifts, drove many companies toward nearshoring and reshoring. This week’s example is a $500 million rare-earths deal at Apple.

The tech giant announced the agreement with U.S. rare earths company MP Materials as a commitment to strengthening the domestic supply chain, reports CNN. Rare earths are critical in the production of Apple’s ubiquitous iPhone, and currently China controls the vast majority. MP Materials’ new Texas facility will create magnet manufacturing lines specifically for Apple products and deliver the materials around the world.

According to Apple’s press release, MP Materials is America’s only fully integrated rare-earth producer, so the new plant and Apple’s investment will establish dozens of new, high-skilled jobs and an “entirely new pool of U.S. talent and expertise in magnet manufacturing.”

In addition to the Texas plant, Apple plans to build a “cutting-edge rare-earth recycling line” in California. It will enable MP Materials to take in rare-earth feedstock and post-industrial scrap and reprocess it for use in Apple products. Notably, there will be a five-year pilot of the technology to ensure the end product meets exacting standards and reflects the company’s commitment to more sustainable practices.

Of course, strategic re-evaluation of global supply chains extends far beyond U.S. borders. Driven by similar desires for resilience, many European tech companies are pursuing their own nearshoring and reshoring initiatives. ASML, a Dutch supplier of chip-making equipment, is exploring localized production options to mitigate tariff impacts and diversify its customer base. Similarly, Germany's automotive sector is actively reshoring elements of EV and battery manufacturing, aiming to create more robust regional networks.

India and Mexico are also benefiting from significant investments. Apple itself has expanded iPhone production into India through partners including Foxconn, recognizing the country's growing manufacturing capabilities. HP and Microsoft are investing heavily in Mexico, leveraging geographical proximity to the North American market and favorable trade agreements.

A showcase for the cutting edge

This global rebalancing demands adaptable supply chain professionals who can manage increasingly diversified networks. Gain these skills with us at CHAINge North America, September 9-10 in Columbus. CHAINge is a uniquely collaborative environment where ideas are sparked by diverse perspectives and grounded in real-time execution. You'll discover breakthroughs in the Innovation Tech Showcase, explore multitier supplier sourcing and digital talent in breakout sessions, and discuss navigating geopolitical shifts in interactive roundtables. Don’t miss your opportunity to design a stronger, more sustainable and resilient supply chain.

The 10 Highest-Paying Supply Chain Jobs

Tue, 15 Jul 2025 00:00:00 -0500

Supply chain continues to be a high-paying, highly valued and rewarding field. According to ASCM’s 2025 Supply Chain Salary and Career Report, the median income for U.S. supply chain professionals climbed 4.5% last year to $103,000. In addition, the vast majority (78%) of survey respondents received salary increases of 9% or more.

This shows experienced supply chain professionals are well compensated for their skills and expertise. The highest-paid individuals tend to have a mix of experience, education and professional credentials. This qualifies them for some of the highest-paying jobs in the field.

Average supply chain salary figures

As part of the 2025 survey, ASCM examined salary ranges by title. Based on this year’s data, the top 10 non-executive supply chain titles by their median salaries are:

Buyer-Planner: $81,500
Buyer: $69,300
Supply Chain Analyst: $85,000
Inventory Manager: $95,900
Logistics Manager: $109,500
Procurement Manager: $128,000
Materials Manager: $109,500
Supply Chain Manager: $123,000
Operations Director: $159,500
Supply Chain Director: $160,000

These titles also have greater earning potential. Earners in the 75th percentile reported salaries as high as $184,200.

The career path to a lucrative supply chain salary

It’s important to note that none of these are entry-level roles. Everyone’s career path is unique, and there are many ways to become a supply chain executive. Some start in other fields and then transition to supply chain after building desirable skills such as project management, collaboration, critical thinking, problem-solving, decision-making and time management. Others seize different career opportunities within their companies to gain well-rounded experience.

According to the most recent career report, there has been a substantial uptick in job mobility within supply chain. In 2024, 16% of supply chain professionals switched jobs within the industry, with the primary drivers being greater responsibilities or a promotion (20%) and higher salaries or better benefits (19%).

In-demand skills shift with growing digital transformation

While careers in supply chains assure a wide variety of work, high salaries and job satisfaction, they require specific education, skills, knowledge and experience.

Along with critical thinking, problem- solving and interpersonal skills, there is an increased need for technological proficiency. This is the direct result of ongoing digital transformation efforts, making technology integration a priority in today’s supply chains. Specifically, 56% of respondents reported at least partial use of cloud computing services in their jobs, with 45% using artificial intelligence (AI). This data shows professionals with technical expertise will be best equipped to navigate the increasingly complex and digitized industry landscape and propel their careers forward.

The impact of education and APICS certification

Career advancement and salary increases within supply chain are significantly accelerated by education and certification level. The salary survey revealed that supply chain professionals with a bachelor’s degree have a median salary of $92,000 — 12% higher than the national median for individuals with a four-year degree.

Those with APICS certification achieved even greater advantages, with data showing a median salary increase of 20% compared to those without APICS designations, proving the strong ROI of industry-recognized certification.

Supply chain salaries globally

The survey also examined supply chain salaries in other countries around the world, including Canada. Canadian respondents reported total incomes as high as CAD $179,000, or about U.S. $130,670. Notably, Canadians who received a new job received a 12% median pay increase, compared to those who remained in their current role (3%).

Here is a closer look at median supply chain salaries in other countries around the world:

Country	Median Salary	In USD (approx.)
Australia (AUD)	AU$ 112,437	$ 73,480
Belgium / Eurozone	€ 79,580	$ 93,382
Brazil (BRL)	R$ 290,141	$ 53,501
France / Eurozone	€ 60,910.44	$ 71,379
Germany / Eurozone	€ 102,304	$ 119,895
India (INR)	₹ 2,015,737	$ 23,533
Ireland / Eurozone	€ 66,516	$ 78,000
Italy / Eurozone	€ 49,864	$ 58,436
Japan (JPY)	¥ 8,897,970	$ 60,873
Mexico (MXN)	Mex$ 792,901	$ 42,480
Netherlands / Eurozone	€ 66,355	$ 77,807
Nigeria (NGN)	₦ 8,230,677	$ 5,365
Pakistan (PKR)	Rs 1,932,345	$ 6,799
Saudi Arabia (SAR)	﷼ 197,099	$ 52,600
Singapore (SGD)	S$ 94,469	$ 69,820
South Africa (ZAR)	R 750,894	$ 41,299
Spain / Eurozone	€ 58,024	$ 68,000
Switzerland (CHF)	CHF 131,466	$ 144,613
UAE (AED)	AED 202,001	$ 54,962
United Kingdom(GBP)	£ 55,158.95	$ 70,038

Conversion Notes

Rates are sourced from current market rates (Wise, XE, Revolut, etc.) as of July 8, 2025.

For pegged currencies (SAR, AED), standard fixed rates applied:

1 SAR ≈ 0.2667 USD

1 AED ≈ 0.272 USD

Swiss franc converted using general strength indicator (safe-haven currency) ≈1.10 USD.

At all levels, supply chain jobs come with other perks. European respondents enjoy the most generous vacation allowance, with 54% receiving five weeks or more vacation time a year. In contrast, 27% of U.S respondents receive four weeks paid time off, and 22% enjoy five weeks or more. In addition, 8% of supply chain professionals receive unlimited paid time off; this benefit is more prevalent in the United States than in other regions.

Supply chain professionals also have high levels of career satisfaction. A significant 61% of respondents reported being “satisfied” or “very satisfied” with their current roles. Furthermore, 83% of respondents are likely to recommend a career in supply chain, while 85% expressed high levels of pride in their work.

Give your supply chain salary a boost

Research shows supply chain professionals with APICS certification earn 20% more than peers without this designation.

For more information about the APICS and Certifications and Credentials available through the ASCM, please visit: Certifications and Credentials

The Extreme-Weather Reality We Must Confront

Fri, 11 Jul 2025 00:00:00 -0500

The devastation witnessed after the recent floods in Texas underscores a critical, undeniable truth: Extreme weather is a compounding reality, and its escalating effect on our world is a crisis we cannot ignore. Increasingly frequent and intense natural disasters are rippling through every corner of our world; they are a profound and urgent challenge to human safety first and foremost, as well as supply chain continuity and stability.

A tragedy in Texas this week, extreme rains and catastrophic flooding led to at least 119 deaths, including dozens of children at summer camp. As of this writing, 172 people are still missing. The emotional impact of this event for these families cannot be overstated, especially as concerns persist regarding whether critical staffing vacancies — particularly for a key warning-coordination meteorologist in the Austin-San Antonio office — could have hindered public outreach, CNN reports. The article notes that the personnel cuts raise serious questions as to whether the tragedy could have been mitigated with proper staffing.

Disasters like these are likely to get worse, as extreme rainfall and flooding are amplified due to human-induced climate change.” In fact, floods affect more people worldwide than any other disaster. By 2050, one study projects the material cost of flooding to rise by $11 billion.

Regrettably, climate change itself is still under debate in some circles. Michael Bloomberg, writing an opinion piece for his own Bloomberg News, states that “climate denialism” made the Texas floods worse: “Climate change is a manageable problem with practical solutions. Those solutions will not only save lives, but also improve our health, reduce our energy bills and create more jobs. The longer these officials pretend otherwise, the more the public will suffer, and the more people will die.”

Although the direct human toll is always our greatest concern, climate change’s impact on supply chain is also undeniable. A threat to the world’s water supply, and therefore the viability of mining copper, puts chip production at risk, reports Asia Financial. Experts believe it will disrupt at a least one-third of the world’s chip production by 2035 and more than half by 2050. Chile, the world's largest copper producer, already faces water shortages that are hindering chip production. And of course, we’ve reported on atypical water levels in the Panama Canal, which have been diverting hundreds of commercial vessels since 2023, causing delays and economic wreckage for local communities.

Meanwhile, severe heat is damaging the food supply in Southeast Asia, Eurasia Review reports, especially rice, which is a staple crop and sensitive to high temperatures. “For the past two years, the region has endured prolonged and record-breaking periods of heat, with air temperatures repeatedly exceeding 40oC [104°F]” — well above the optimal range of 22-28 oC (72-82°F), per the World Meteorological Organization. Alarmingly, Asia is warming twice as fast as the global average, with the trend from 1991 to 2024 almost double that of 1961 to 1990 period.

Action amid adversity

Fortunately, there are many ways we can help. In the short-term, convenience store chains, grocery stores and big-box stores are already stepping in with donations of money, food and supplies. And ASCM partner ALAN (American Logistics Aid Network) is offering support on a larger scale: The nonprofit provides logistics-related relief resources and guidance for amazing results. If you would like to help, ALAN requests donations in the form of warehouse space, trucks, equipment and financial contributions. Or to volunteer your expertise locally, here is a list of urgent requests.

In the longer-term, supply chain organizations across the globe must commit to reducing our climate impacts. This is a key area of focus at CHAINge North America, where sustainability-focused educational sessions, panels and roundtables will empower you to become a force for corporate social responsibility and business integrity. I hope you will join us in Columbus, Ohio, September 9-10.

AI-Driven, Dynamic Pricing Strategies Solve Inventory Challenges

Mon, 07 Jul 2025 00:00:00 -0500

One of the biggest challenges facing supply chain managers is ensuring that there is enough supply in the pipeline to meet demand, without carrying too much additional stock. In a perfect system, cycle stock would meet 100% of the demand, and no other inventory would be needed — except safety stock, which provides a buffer for uncertainty on both sides of the supply-demand the equation.

To a large degree, artificial intelligence (AI) has improved supply chain management. AI systems use predictive analytics, rather than gut feelings, to manage and reorder stock based on lead times, historical data and seasonal demand. Using predictive demand distribution tools, these AI systems balance supply and demand, resulting in cost efficiencies in terms of warehousing and inventory withholding costs.

Surprisingly, there is little discussion in the market about an AI tool that can help manage supply chains. The role of price — and specifically, dynamic pricing — in supply chains is poorly understood, but it can be used to optimize inventory.

Dynamic pricing engines find the optimal price based on predetermined requirements. A shoe retailer might want to consider external factors, such as the competitive environment or an upcoming citywide marathon, in addition to internal factors, such as customer history or inventory levels to determine price. The AI-driven pricing engine accounts for a number of factors and recommends the price point most likely to close the sale while meeting the retailer’s requirements.

It is important to note that dynamic pricing does not necessarily mean price increases. Like demand, dynamic pricing is bidirectional. The dynamic pricing engine may determine, for any number of reasons, that it is advantageous for a retailer to lower prices to close the sale. At the same time, demand varies based on the needs of consumers. As demand changes, prices should change, as well. Products in high demand but limited supply benefit from higher prices. Obviously, this situation is good for retailers that can earn extra profits. These price increases also are healthy for the supply chain because they can slow demand growth so that networks can still function effectively while managing and warehousing fewer items.

Conversely, if supply is high, retailers can move products through the supply chain by lowering prices. Profits won’t be as high for each item, but retailers can make money from the sales volume and ultimately realize significant savings by removing merchandise from the supply chain. By connecting the retailer’s category manager to the supply chain, both parties benefit.

Proper pricing in action

In the dynamic world of supply chain management, balancing the competing pressures of supply and demand is a constant challenge. While traditional methods have long focused on optimizing inventory, the integration of powerful tools, such as AI-driven dynamic pricing, offers a new frontier for efficiency.

Navigate these new supply chain challenges and opportunities with ASCM's Foundations of Supply Chain Management program.You'll gain a comprehensive overview of essential concepts, including supply and demand planning, inventory management and more, giving you the knowledge to successfully apply the most exciting emerging tech.

Editor's note: This article has been updated to reflect current trends and topics in supply chain. The original publish day was February 2021.

Supply Chains Light Up Global Summer Traditions

Fri, 04 Jul 2025 00:00:00 -0500

In the United States, we're celebrating Independence Day — a holiday that’s synonymous with summer. But we’re far from the only country with a rich tradition of warm weather celebrations: From bonfires in Sweden to lantern parades in Japan, summer traditions unite us. And of course, it’s our global supply chains that make them possible.

Starting with July 4th, it’s fireworks that reign supreme. Creating traditional pyrotechnics is a labor-intensive process: A delicate chemical mix is packed into components, including shells and fuses. Skilled technicians meticulously assemble each firework to ensure a visually stunning experience while prioritizing safety and quality control.

Interestingly, cities are increasingly using drone-based light shows to recreate the fun of fireworks but with less air and noise pollution, notes the Daily Wire, including Pasadena’s famous display at the Rose Bowl. Plus, the show is all preprogrammed by software engineers.

Across the pond, summer brings Walpurgis, or Valborg, to Sweden. Traditionally, the holiday marked the changing seasons and was designed to keep evil spirits at bay. Now, it’s more about celebrating as a community around a big bonfire. It's a symbolic farewell to the dark months and a fiery hello to the lighter days ahead.

Walpurgis celebrations include raft races, with modern PVC rafts, which are more sustainable than traditional plastic. “Made from rock salt (57%) and oil (43%), PVC contains less carbon than most major thermoplastics.” It can also be recycled up to 8 times. When manufacturing the rafts, the parts are joined with a specific PVC welding process, such as hot air welding, hot wedge welding or high-frequency welding — all completed using specialized machinery by fabric manufacturers.

Spinning the globe further, we come to the Nebuta Festival in Japan, when “giant floats dazzle with illuminated designs of peony flowers and angry-faced ogres,” per National Geographic. As with Sweden’s Walpurgis, the purpose of the Nebuta Festival is to chase away evil spirits; they simply use cleverly designed floats to do it.

Created by master artisans, the floats consist of wire, wooden plans, lightbulbs, washi paper and canvas. Awagami brand washi papers are made by hand and machine — and only in Japan. The fiber used in the pulp is harvested from the kozo plant, found in the Japanese mountains and harvested in winter.

Powering global summer traditions

Whether near or far, it’s supply chain professionals who make the magic happen. Be a part of this magic by joining us for CHAINge North America, September 9-10 in Columbus, Ohio. This immersive experience will deliver expert supply chain education — and some great celebrations to enjoy with your colleagues from around the world. First, find something delicious at Taste of Columbus, featuring top local restaurants. Then, don’t miss the After-Dark Carnival, alight with arcade games, classic rides and a DJ spinning tracks into the night. Early-bird pricing has been extended through July 10, so act now to join us for this illuminating experience!

Boost Procurement Focus for Excellent Supplier Relationships

Fri, 27 Jun 2025 00:00:00 -0500

Supplier relationship management can make the difference between having the inventory you need or having empty store shelves. However, supplier relationships are not built overnight; they take a lot of effort and communication. Here, Mike Bunge, vice president of global supply chain and operations at Hamilton Beach Brands, now shares his advice for building and sustaining positive supplier relationships.

(Note: This is the second article in a three-part series. Read the previous story here.)

ASCM: In both good markets and challenging times, supplier relationships are critical to procurement excellence, supply chain agility and logistics fluidity. What is your approach to developing and managing supplier relationships?

Bunge: Supplier relationship management goes through a maturity cycle. It is not a normal progression to jump into a stable and mature relationship with a new supplier from the start — especially if you’re working in a different country, in different time zones and in different cultures. It takes time, dedication and a formalized supplier management process.

A supplier management process should be documented and understood by both the company and the supplier. It should help to define the roadmap to maturity so that a supplier understands what is clearly expected and how it is being judged and graded. Also, the process should include a means for consistent feedback so the supplier knows how it is performing in the eyes of the customer.

In my previous experience, we had many opportunities to interface with our own supply base during the year. 2020 was no exception. We continued to connect with our supply base digitally. We also had a reward system in place that allowed our suppliers to earn recognitions at our annual awards banquet. Our award packages included preferential supplier benefits, such as additional information sharing, access to our organization and our participation in their planning programs.

We also had an opposite program in place for suppliers that needed to improve. We put these suppliers on a probationary status, and we very carefully outline the reasons why they have reached this status and offer steps to help them go back to our normal status. If the problems are not corrected, we also had a disqualification status and formal disengagement process. Of course, the purpose is not to disqualify suppliers but to instead drive continuous improvement and maturity within our supply base.

ASCM: Why is it important to set and enforce high standards and ensure suppliers align with your company’s values?

Bunge: There are some areas in the supplier relationship that are non-negotiable. Unless certain high standards are met, we do not place orders. This is especially true in the areas of values and ethics. In our supplier evaluation programs, we code our audit principles as red, yellow and green based on the severity of an infraction. For example, something like forced labor is coded as red. There is no room for negotiation when it comes to forced labor. Something like finding a secondary or tertiary gauge out of calibration, though, would be coded as green. This means that the issue is not critical to the business, and it just is in need of a correction.

We view most areas of sustainability as a maturity model. There are certain areas where we are unable to compromise, but in most sustainability areas, we are just looking for continuous improvement. We are very clear on our sustainability standards with everything documented.

We also have somewhat of a unique approach to auditing. We do not want to harp on minor infractions. That just causes the factory to feel like it has failed, and it creates animosity at all levels. Instead, we approach audits like a maturity process. We want to address critical issues and identify smaller areas that just need minor improvements, but we also want to find opportunities to add value to supply chains.

ASCM: On the other side of the relationship topic, what do you do to ensure that your company is a customer of choice so that you can obtain the necessary materials or items to keep your own operations moving?

Bunge: We ask for feedback every chance we get. Most companies do not have a formal customer evaluation system — like they might for supplier evaluations — so we have to ask. And we don’t just ask a simple question. We probe deeper to gain an understanding of how we can improve. We ask for feedback in terms of how our company and account are viewed, including about the profitability and volume of our account and how we engage in the planning and ordering process.

With our top suppliers, we set goals together in these areas. We ask to participate in their account planning meetings and discussions and to be part of the budgeting process. Most suppliers are not used to a customer asking for this feedback and asking to be involved in these areas. But at the end of the day, we want our suppliers to be profitable and stable. We want them to view us as a preferred client. We want to work together to drive waste out of our supply chains.

ASCM: What are some common supplier relationship management challenges, and how can these problems be overcome?

Bunge: On the tactical side, problems can be as basic as the supply chain not running on time. We have a batch system, and every week we review the backlog at each supplier — which items are running ahead and which ones are running behind — and we update shipping schedules weekly. Sometimes it’s not a problem if some items are running behind, and we reach out to the supplier to let them know that we’re fine with the delay. Otherwise, we look to the five whys to figure out the constraints behind the delay and how we can solve the problem and get the order back on schedule — whether this means helping the supplier with its challenges or adjusting our own project parameters.

As I mentioned, having documentation and formal processes helps supplier relationship management run more smoothly. Clear communication can sometimes be challenging within an individual company. However, as you grow into a global context with cultural differences in communication styles, languages and interpretation, documentation is especially important. It’s not enough to just say what you are going to do. You have to document it too. This makes the statement clear to everybody. That way, you can spend your time figuring out how to add value and not what the directive is. When you have a clear playbook, both the customer and supplier know what to expect. Everything is not going to be perfect, but this will minimize surprises on either side.

ASCM: How do you inspire, influence, inform, grow and develop your own suppliers?

Bunge: This is one area where psychology comes into play. I’ve been very fortunate to work with some of the best industrial psychologists. The same skills and tactics leaders hone to lead their own personnel can be used to inspire suppliers.

At the end of the day, we want our suppliers to know us and love working for us as a customer of choice. Note that I didn’t say get rich off of us, though. Psychologists have studied money as a motivator in workers, and I think the same concept applies to suppliers. Maslow’s Hierarchy of Needs explains that once people’s basic needs are satisfied, their needs become more emotional and less financial. There is a basic level of profitability required for a supplier relationship to work, but beyond that, fulfillment comes in the form of nonmonetary motivators, like the award packages I mentioned before.

We give our preferred suppliers deeper access into our organization. For example, if they are collaborating with us on a big project, they might work with an engineer or the sales and marketing team rather than only a buyer. We also give our preferred suppliers the first opportunity when we launch a new program or are working to earn a new customer. These intrinsic rewards — the opportunities to grow, earn new business, understand our markets better and better align their capabilities with our marketplace — tend to make suppliers feel more fulfilled in their relationship with us.

Drive strategic value for your supply chain by earning ASCM's Supplier Relationship Management Certificate. Gain comprehensive knowledge of the concepts, tools and trends related to supplier relationship management.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was April 15, 2021.

The Legacy that Shaped Modern Supply Chains

Fri, 27 Jun 2025 00:00:00 -0500

It's not often that you can trace the entire foundation of an industry to one trailblazer. Fred Smith, FedEx's founder and longtime CEO, didn't just build a company; he invented the concept of overnight delivery. Smith passed away this week at age 80, leaving behind a legacy that spans 220 countries and territories.

Famously, Smith first conceived of “an integrated air-to-ground system that would ensure overnight delivery” while in college at Yale. He argued that an increasingly automated economy would depend on fast and dependable door-to-door shipping of small packages — particularly ones carrying parts. Ironically enough, he got a C on the paper he wrote on the topic. Yet the seemingly mediocre idea became Federal Express just nine years later. And now, FedEx handles more than 17 million shipments each day, with goods totaling $2 trillion annually.

A decorated U.S. Marine and Vietnam veteran, Smith was cochairman of both the U.S. World War II Memorial project and the campaign for the National Museum of the Marine Corps. In the 1970s, he championed the Civil Rights Movement and equal opportunities for underserved communities. He supported significant regulatory reform in the aviation and trucking industries, as well as environmental sustainability.

Smith's genius laid a path, but even the most revolutionary ideas face new frontiers. Significant challenges now confront supply chain organizations:

Uncertainty around tariffs is the top pain point these days, as transportation costs vary wildly depending on the country of origin and the frequency of policy changes. Businesses often have trouble solidifying orders when the costs of shipment are unpredictable.
Ongoing labor shortages also raise costs. Although increasing automation is a sound strategy for combating a shrinking workforce, it’s not feasible in all instances. Plus, skilled workers are needed to control and monitor many autonomous robots.
Consumer expectations around real-time tracking is another issue plaguing the logistics industry. As Amazon and other big box stores mainstreamed next-day shipping, people want constant updates on order location and delivery windows.
Although FedEx itself has committed to reaching carbon neutrality by 2040, the logistics industry as a whole faces significant sustainability challenges. Reports McKinsey: “Logistics emissions from freight and warehousing account for at least 7% of global greenhouse gas emissions.” And while many companies use energy-efficient vehicles for last-mile deliveries, others rely on gig workers to distribute those packages, and there’s no regulation around their vehicles specifically.

Logistics know-how at your fingertips

Smith's logistics vision was built on pioneering innovation, and that’s also the best way forward for supply chain professionals today. First, look to ASCM’s Technology Certificate to ensure you're ready to maximize the latest logistic tech. Then, further your training with the Certified in Logistics, Transportation and Distribution (CTLD) program to gain the expertise you need to tackle logistics challenges of all kinds. Act now, and you’ll save 15% off the purchase price with promo code SUMMER2025. That’s a deal that delivers!

Master AI For Competitive Supply Chain Advantage

Mon, 23 Jun 2025 00:00:00 -0500

AI-enabled supply chain management has the potential to supercharge demand forecasting, revolutionize end-to-end transparency and boost integrated business planning. AI is ASCM's number-one supply chain trend to watch; according to research, it's foundational to integrating people, processes and systems in a wide array of operational environments.

Further, the technology-driven evolution to industry 5.0 — which involves a more collaborative approach, as well as partnerships between humans and robots — will have a significant impact on supply chain functions such as planning, demand management and fulfillment. As machines learn, improved insights will be discovered, leading to significant transformation, advancement and competitive advantage.

Five exciting applications in supply chain

AI is about making better decisions faster by combining significantly more inputs and signals than humans can process. AI can adapt in near-real-time to changing conditions and develop new knowledge by processing more data and revealing hidden correlations. This has led to the rise of several game-changing applications, with countless more to emerge in the future:

1. Autonomous delivery robots and drones are being used for last-mile delivery, slashing costs, reducing the traffic burden on roads and improving delivery times. These machines can handle navigation, trajectory adjustment, moving obstacle detection and avoidance — all in near-real time, says Desirée Rigonat, Ph.D., optimization and machine learning consultant at DecisionBrain. “Technological awe aside, autonomous delivery has proven incredibly useful during the pandemic,” she notes. Further, contactless delivery with drones is in high demand. In 2022, Walmart used drones to deliver more than 6,000 items. Currently, Walmart and its partners offer 20,000 products available for drone delivery in less than 30 minutes.

2. Warehouse workers of the future will be increasingly equipped with augmented reality tools, such as smart glasses that enable hands-free order picking. This also has enormous potential for improving warehouse efficiency, as illustrated in a recent pilot developed by Ricoh and DHL.

3. AI has the potential to boost multi-dimensional decision-making processes that take into account impacts beyond the walls of an organization, such as environmental, social and governance (ESG) applications. “AI enables a longer-term approach through models and simulations and can take over data-management processes such as data discovery, collection and processing,” says Bertrand Maltaverne, procurement digitalist and senior analyst at Spend Matters. “AI can act on this data, either autonomously or by providing human decision-makers with data-based recommendations.”

4. Digital twins enable supply chain management professionals to test the impact of a change in a zero-risk virtual environment before implementation in the real world. Maltaverne says they can be used to design supply chains, analyze scenarios, build knowledge and optimize operations. Users can create proactive optimizations based on real-time signals — demands, markets and geopolitical — and, when incidents happen, either anticipate or react immediately via contingency plans or ad-hoc recommendations.

5. AI in supply chain also can enable smarter process automation, both upstream (supplier discovery, supplier qualifications and sourcing) and downstream (inventory management, order management and freight optimization). As McKinsey notes, automation of the physical flow of goods is built upon prediction models and correlation analysis to better understand causes and effects.

Getting the most out of AI as a predictive tool

Supply chains can maximize their investment AI through careful change management, data quality and availability. “Organizations must have a change-oriented mindset,” Rigonat advises. “In most cases, AI technologies radically change the way people work, so it is fundamental that involved workers and their management are receptive to this change.”

Communication is key: Employees who believe the new tool is there to replace them will not contribute to its adoption and improvement, which will ultimately cause the project to fail. People should be convinced that the initial learning curve is a fair price to pay for the value they and their teams will receive from these technologies.

In addition, many organizations underestimate the time and effort that will be involved in ensuring data quality and availability when transitioning to an AI-based solution. “If the data is imprecise or incomplete, the tool will not be able to produce useful results, following the well-known garbage-in garbage-out principle,” Rigonat warns.

Maltaverne agrees: “The highest cost for an AI initiative is not the AI itself – in fact, there are many AI algorithms that are open-source and free. It’s the cost of the data required.”

Pitfalls to avoid when using AI

Besides the technical risks linked with data availability and quality, some of the biggest pitfalls to avoid are forgetting the human factor, setting expectations too high and biased data. AI can automate many repetitive tasks and deliver significant return on investment, but it cannot replace people entirely. This means supply chain organizations still require a combination of automation and human interaction, which introduces an increased likelihood of human error.

Likewise, ML and optimization models are written by people, who might introduce biases and errors. And even when that is not the case, unpredictable and unprecedented situations occur. Maltaverne also flags the dangers of biased data: “Relying on bad data is dangerous, as AI will act on it and make things worse.”

Supply chain challenges that AI can help solve

Business cases for investment in supply chain AI should be framed around targeted solutions to your organization’s pain points. Rigonat lists several challenges that AI can advance, including production planning, demand forecasting, inventory management, routing, dynamic pricing, finding the best suppliers, maintenance planning, facility location (depots and warehouses), fraud detection and quality control in the production line.

“Just as business rules engines have yielded great results in fraud detection and back-office tasks automation in the finance sector, they could do the same for supply chain,” she says. “AI can also be successfully used for programming customer service chatbots to improve and automate time-consuming tasks that are still handled manually.”

Moreover, better buying — in particular, ESG-related decision-making — is currently very difficult due to a lack of data. “Every decision is a complex one because it involves finding the right balance and juggling trade-offs with limited visibility,” Maltaverne says. “AI can plug into data lakes across silos and provide the recommendations needed for better buying, especially when it is combined with the potential of real-time internet-of-things data and the trust generated by blockchain.”

For Maltaverne, the key challenge that AI can help with is VUCA (volatility, uncertainty, complexity and ambiguity). He notes that most organizations do not have a proper risk-management framework in place, which becomes starkly obvious when an incident occurs. “Take the Ever Given in the Suez Canal: How long did it take for organizations to understand the blockage’s impacts and put actions in place to adapt to it? Having an always-on, AI control tower connecting an organization to partner ecosystems and the outside world makes an enormous difference.”

Drive innovation with the latest technology. Explore ASCM's Supply Chain Technology Certificate to learn how you can master AI for your business.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was January 11, 2022.

Why Traceability in Manufacturing Is Paramount

Sat, 21 Jun 2025 00:00:00 -0500

When operating an efficient product supply chain, every component matters. The ability to track each piece from its origin at the supplier’s facility to its final delivery to customers should no longer just be a benefit or add-on service. It is a necessity. With an even greater focus on quality control and compliance across the manufacturing sector, as well as increased customer scrutiny of how raw materials are sourced and processed, traceability is more important than ever.

Because of its criticality, traceability needs to be a part of everyday operations. Companies should not only track individual components and products but also critical information such as details about suppliers and the products or inputs they provide, details about customers and the products supplied to them, the date of every transaction or delivery, the batch or serial number for each stock keeping unit, quality records for every component or batch, and the volume or quantity of every batch.

For companies that do not have dedicated traceability tools and processes in place, dealing with traceability queries can be time-consuming. In some cases, the inability to show evidence of origin or use can quickly escalate into a more pressing business issue. As such, having the ability to track components both forward and backward across the supply chain can eliminate unforeseen issues and save time and money.

Traceability also can help with inventory management and operations planning. Having the ability to trace fluctuations in raw materials, to understand when a machine part is coming to the end of its life, and to monitor the quality of parts and materials from specific suppliers will enhance every level of the supply chain. It’s safer and more efficient in the long run to make decisions based on solid facts and data as opposed to estimates.

Catering to customers

Once a product leaves a factory, traceability plays a key role in customer satisfaction. First, consumers care about product origins. They want to know where products come from, who makes them and how they are made. This is especially true in the food manufacturing sector, which has come under greater scrutiny in recent years. Being able to provide this detailed information can satisfy consumers’ curiosity and, in some cases, alleviate concerns about practices that can harm the environment or that are unethical.

In many sectors, consumers are turning toward more sustainable options as their concerns for the environment grow. A recent PwC Voice of the Consumer Survey revealed consumers are willing to spend 9.7% more for sustainably produced and sourced materials.

More importantly, consumers want to know that the products they purchase and consume are safe. In the food and beverage industry, products frequently are recalled for a variety of reasons, including contamination by other foreign objects, such as metal or plastic debris from the machinery used to make, process or package the products or remnants of equipment-cleaning fluid, or foodborne bacteria. A recall event will certainly sour sales, even if just in the near-term, and likely will alter consumers’ perceptions of the brand.

However, having the proper traceability tools and protocols in place can save a company’s brand image when a recall event occurs. In fact, the benefit is at least twofold: the recall will be more targeted, which means discarding only the affected products, and consumers will be impressed, or at least calmed, but the company’s quick response to the issue.

Prepare for all scenarios

Traceability also helps with pleasing supply chain partners. Enhanced visibility enables quick turnarounds, increased attention to customer needs and competitive pricing.

Attention to product performance further down the supply chain also can help protect the reputation of all members of the supply chain. If one company institutes a cost-cutting measure or starts slacking off on quality assurance, traceability will help identify issues caused by these practices and empower supply chain players to quickly resolve the problems. Ideally, every company should ensure that it has the relevant technology and platforms in place to provide the ability to quickly recall products, track production and match replacement parts. Pair this ability with a solid crisis management contingency, and you will be prepared for all scenarios.

Traceability and visibility are essential for supply chain operations and for the consumers they serve. You can learn more about the importance of adopting traceability and visibility solutions for your organization by downloading ASCM’s Top 10 Supply Chain Trends in 2025.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was January 22, 2020.

A Refill Mindset Equals Big Wins for Supply Chains

Fri, 20 Jun 2025 00:00:00 -0500

The phrase "reduce, reuse, recycle" was popularized in 1976 with the passing of the Resource Conservation and Recovery Act. It has been an enduring staple of the sustainability movement, and its application holds profound strategic business value — especially for supply chain professionals. At ASCM, we talk a lot about reducing waste, from cutting carbon emissions to right-sizing shipping boxes. As for recycling, we’ve explored many examples of this integral piece of the circular supply chain, including recycling plastic resins and eliminating the need to mine by recycling essential metals. But this week in the news, it’s all about reuse.

That’s because June 16 is World Refill Day, a global day of action that aims to speed the transition away from single-use plastic and toward reuse systems. According to the UN Environmental Programme, half of the 400 million tons of plastic we create every year is single-use. World Refill Day urges consumers to combat this culture of disposables by, for instance, bringing their own containers and cutlery for takeout meals, carrying a reusable coffee cup, or drinking from refillable water bottles. With 72% of people already wanting more reusable, refillable and returnable options where they shop, this is a compelling reason for any business to get involved in the movement.

For its part, L'Oréal Group has announced a partnership with World Refill Day through its first global multi-brand campaign, #JoinTheRefillMovement. The initiative promotes refills as a new beauty ritual to foster a more sustainable future. “We have an opportunity, as well as a responsibility, to create more circular solutions,” says Ezgi Barcenas, L'Oréal chief corporate responsibility officer. “Achieving this vision at scale demands more than innovation; it requires intention and action.” To that end, the Group has significantly adapted its manufacturing sites around the world to enable a 17-fold increase in the number of refillable options available over the past five years.

Another company taking the refill challenge to heart is luxury brand YSL Beauty. Caroline Negre, YSL global sustainability and scientific director, offers the following example related to refillable fragrances: Buying one new YSL LIBRE perfume and one refill — equivalent in volume to three new bottles — saves 41% of the glass that would typically be used in production, 67% of the metals, 38% of the plastic and 28% of the paper. “We want to encourage consumers to embrace refilling as a new beauty ritual,” she adds. “Small, everyday actions can collectively make a big difference for the environment.”

Build on the movement

Consumers may need gentle encouragement to reduce waste, but businesses have an obligation to act. There’s no better way to build sustainability into our global supply chains than by incorporating circularity principles into all we do. Start by assessing your current state with ASCM’s Enterprise Standards for Sustainability, which empower companies to meet their green goals.

Then, investigate how prioritizing sustainability not only benefits the planet, but also significantly boosts employee engagement and retention, according to new collaborative research from ASCM and Gartner. Download the full report and watch the joint webinar, The Mandate Effect: Gartner and ASCM Share How Sustainability Action Improves Talent and ESG Outcomes, to learn more.

Finally, understand why sustainability and resilience go hand-in-hand with ASCM’s Supply Chain Resilience Certificate. Through this program, you’ll understand how to manage risk throughout your networks, make data-driven decisions and prioritize sustainability to achieve a much more resilient operation. And right now, you can take advantage of our summer sale — 15% with the promo code SUMMER2025. Get started today and discover why ASCM education is your career's favorite reusable asset.

5 Ways AI Is Becoming Essential to Supply Chain

Tue, 17 Jun 2025 00:00:00 -0500

In the era of Alexa, Siri and predictive text, people are growing accustomed to having AI assistance in their daily lives. In the workplace, humans work alongside robots to boost productivity and even spare humans from the most dangerous, strenuous and boring tasks. Robots and drones also do package deliveries or act as servers in restaurants. Cars have AI features that help people drive more safely and avoid accidents. So far, the human-machine relationship has seemed harmonious. There often is resistance at first, but, for the most part, the partnership works out.

Uses for AI in supply chain

AI can make sense in supply chain and many related fields:

1. Supply chain. The primary value of AI in supply chains is to provide visibility along the supply chain to identify potential problems and assess ways the supply chain could be improved. Applications include:

Predictive forecasting: AI can improve data forecasting by providing a comprehensive look at historical data, customer behavior, market trends and additional external factors.
Improved inventory management: AI can help assess historical sales data, seasonal trends and other factors and recommend the optimal stock levels to predict reorder points.
Autonomous supply chains: With the use of smart devices and sensors that collect data in real time and AI-driven algorithms, data is processed autonomously, leading to quicker decision-making and precise action-taking in less time.
Risk management and resilience: AI provides advanced risk management solutions as it continuously analyzes and monitors data to identify potential threats.
Personalized customer experience: When organizations leverage AI-driven analytics, they can gain a deeper understanding of customer preferences, behaviors and purchasing patterns.

2. Manufacturing: AI can process data for production and throughput optimization, product quality assurance, predictive or preventive maintenance, energy reduction, and other manufacturing functions. Other manufacturing applications for AI include collaborative robots, AI-enhanced design and prototyping, autonomous material handling, and human-machine collaboration.

AI, machine learning and cloud computing have not yet been widely adopted by the manufacturing industry. Data and intellectual-property protection are chief among adoption concerns. However, the technology is making inroads in food and beverage manufacturing — where it contributes to streamlining production processes and enhancing food safety — and precision aerospace manufacturing.

3. Farming. AI can help farmers evaluate when and how much of a certain crop to plant by taking into account soil, market potential, weather forecasts and other variables. In addition, a new internet-of-things system currently is being used to monitor and identify sickness in cattle. The system uses AI and machine learning to monitor animal behavior and detect early signs of sickness. Farmers get real-time access to the data, helping them make rapid decisions and catch cattle illnesses early.

4. Health care. AI has the potential to help medical providers offer more and better care to patients. Capabilities include the following:

Keeping patients well: AI can help health care professionals better understand the day-to-day patterns and needs of the people they care for, which in turn helps them give patients better feedback and support for staying healthy.
Early detection: The combination of data from consumer wearables and other medical devices combined with AI analysis can help doctors oversee early-stage heart disease by monitoring and detecting potentially life-threatening episodes at earlier, more treatable stages.
Evaluation: Using pattern recognition, AI can identify patients at risk of developing a condition or monitor how an ailment is improving or worsening.
Communication: Medical groups in California and Wisconsin are leveraging AI to read patient messages and draft responses for doctors to approve and send to help cut down on their administrative tasks and improve communication with patients.
Research: AI can streamline the drug discovery and drug repurposing processes to significantly cut both the time to market for new drugs — which currently is 12 years on average — and their costs.
Training: AI provides naturalistic training simulations that can be continually adjusted to meet the trainee’s learning needs.

5. Retail. Like other businesses, retailers are leveraging chatbots to offer 24/7 customer service to shoppers. Behind the scenes, AI also optimizes inventory management by predicting demand to prevent overstock or stockouts, thereby improving operational efficiency. Amazon is leveraging AI in some of its warehouses to screen items for damage before orders are shipped to customers to help cut logistics time and costs.

Obstacles to adoption

One of the largest obstacles to adopting AI is human perspectives. Humans worry that AI will take away their jobs. As history shows, technology usually changes jobs, but then humans can take on new, value-added and more interesting tasks that ultimately give humans new skills, higher earning potential and greater job satisfaction.

Beyond that, companies and users worry about what goes into AI and what comes out of it. AI is only as good as the information in its database. Companies need reliable data for AI to use in order to receive effective support from the tool. Furthermore, stakeholders need ways to verify that outputs are accurate and being shared with the proper parties to prevent fraud and security issues.

What’s next for AI in supply chain

As with any technology, it is prudent for companies to not jump headfirst into AI adoption and instead take time to evaluate the tools and how it can support a business. Gartner currently places generative AI at the Peak of Inflated Expectation on its Hype Cycle but expects that the technology will be able to offer transformational benefits within two to five years.

AI already does many things faster and more effectively than humans. It can perform more complete analyses, retain and access information faster, and develop better insights about cause-and-effect situations. So often in business, improvement is defined by improving efficiency and cutting costs, and AI can do just that — and help humans to do more, discover more and move industry forward.

Learn how to leverage emerging supply chain technologies for improved operational performance with the ASCM Supply Chain Technology Certificate.

Editor's note: This article is an updated version of the original blog, which was first published in 2023.

Rapid Strategy Shifts to Face the Trade War Head-On

Fri, 13 Jun 2025 00:00:00 -0500

The ongoing tariff saga continues, as the topic returns with renewed vengeance this week. After the roller coaster of announcements, delays and policy reversals during President Trump's early weeks in office, the sheer volume of information has certainly been challenging to monitor. Along the way, the ASCM Tariff Tracker has provided key insights to keep you well-informed. Still, there’s no doubt that these shifting dynamics are having a profound impact on global operations.

Trump has now announced that the trade war with China is “done,” per CNBC. He claimed that the tariffs on Chinese goods will remain at the current rate of 55%, with no future increases. What will change is suppliers’ relationships with businesses: “The damage to the supply chain, the U.S. consumer and the economy will remain,” the article continues. “Most companies are working on a 40-60% gross margin, which will cause either substantial price increases or substantial cutting of expenses to survive.”

A very timely piece also released this week is a Harvard Business Review report that offers strategies for managing delicate supplier relationships in a chaotic landscape. HBR interviewed supply chain leaders across industries to understand how they handle the many challenges of the trade war. They specifically asked for practices that can be swiftly put into place for more immediate results. Here are some of their suggestions:

Be honest. Transparency with stakeholders is crucial. Address the situation openly to demonstrate the kind of leadership that fosters lasting trust. This proactive communication will help you maintain stable relationships through uncertain times.

Rethink product composition. Not every product can be materially adjusted and remain viable; but some can. If possible, switch to using materials that are not taxed as heavily. For instance, one manufacturer explained that increasing an item’s aluminum content and reducing the amount of steel enabled the company to reclassify the product in a category that’s subject to much lower tariffs.

Understand the details. Take a cue from the past — namely, the struggles during the pandemic — and gather subject-matter experts in every department to help you better understand the particulars through both data and discussion.

Consider nearshoring or reshoring. While changing manufacturing locations isn’t always feasible, it may be possible to import pieces of goods and finish assembly in a local facility. As another idea, one company reported that it now has facilities on both sides of the U.S.-Mexico border to provide similar flexibility and agility.

Swap suppliers. Sometimes the best solution is the most obvious: Source from a local partner. This represents a fundamental shift in supply chain design, moving away from purely cost-driven decisions to prioritizing more stability and fewer liabilities. It also likely requires careful planning and a thorough assessment of new supplier capabilities to maintain product quality and delivery schedules.

Invest in a resilient supply chain — and yourself

Holistic supply chain expertise is more critical than ever, and the APICS Certified Supply Chain Professional (CSCP) program is the way to get there. It provides essential knowledge to navigate global supply chains, covering everything from managing demand and global networks to sourcing products and services to fostering solid supply chain relationships.

Plus, the ASCM Supply Chain Resilience Certificate further enhances your ability to make data-driven decisions and integrate resilience into your supply chain management — crucial skills for today's challenges.

And as a valuable benefit, professionals holding an ASCM credential report a median salary 8% higher than those without, according to ASCM's latest Supply Chain Salary and Career Report. Those with a bachelor's degree and a credential earn an impressive 18% more.

Right now, you’ll enjoy 15% off APICS learning systems, bundles and certificate programs with code SUMMER2025. That’s one investment that you can rely on.

Aim for One-Piece Flow Manufacturing to Advance Operations in Any Plant

Mon, 09 Jun 2025 18:00:00 -0500

Lean manufacturing is intended to create continuous flow, keep material moving, and reduce work-in-process and cycle time. Smaller lot or batch sizes are a necessary part of that goal, with a lot size of one as the ideal. But what does one-piece flow mean to a company manufacturing potato chips — one chip ... one bag ... one case ... one pallet? Process manufacturers including food and beverage, chemical, pharmaceutical, and many other companies can’t really go all the way to one-piece flow. But that doesn’t mean it shouldn’t be a target to aim for.

Understanding one-piece flow

The ASCM Supply Chain Dictionary tells us that one-piece flow involves processing items directly from one step to the next, one unit at a time. This method is a cornerstone of lean manufacturing, designed to eliminate wasteful queues and unnecessary waiting between production stages. By minimizing work-in-process and reducing inventory buffers, one-piece flow helps advance operations by shortening lead times and streamlining communication, making it quicker and easier to pinpoint any problems as they arise.

Achieving one-piece flow may require some process redesign, but the benefits are well worth it:

Increased flexibility and responsiveness: If each item being processed can be different from the prior or following item, there will be much more flexibility in planning and scheduling.

Reduced inventory: Smaller lot or batch sizes lead to more frequent production of each material, reducing inventory and, thus, the carrying cost of that inventory and the floor space it consumes.

Improved safety: Smaller lot sizes can be moved in smaller containers or carts, easing forklift traffic.

Improved quality: If individual parts are made and used one at a time rather than in large batches, any out-of-tolerance parts will be quickly recognized.

One-piece flow in process manufacturing

Manufacturing refrigerators, cars or cell phones is a distinctly different process from manufacturing automotive fluids, house paint or disposable diapers (more on that later). As previously noted, the need for chemical or mechanical processing makes one-piece flow unrealistic.

Let’s return to our potato chip plant for an example. Picture a typical chip plant. Its output includes chips in various shapes (flat, wavy, rippled) and flavors (salted, barbecue, sour cream and onion) in bags with many different sizes and packaging labels. A number of bags go into each case that then goes onto a pallet. Single chip, bag or case flow is ridiculously impractical. Even with single-pallet flow, workers would spend an hour building a pallet, then incur a 30-minute changeover, which would severely hinder manufacturing throughput.

How to apply one-piece flow manufacturing

The good news is that it’s possible to move closer to this desired state using the following four strategies:

1. Implement elements of cellular flow. Group products into families with similar characteristics and dedicate each family to a specific machine or line. This will reduce complexity and perhaps the number of changeovers. For instance, a furniture manufacturer might dedicate one assembly line to standard dining chairs and another to more complex, custom office chairs, optimizing the specific tooling for each family.

2. Where the equipment will successfully process smaller batches, explore the practicality of going in that direction. For example, on a machine producing rolls of weather-proofing house wrap, the standard may be to produce 2,000-pound rolls. But if there’s enough capacity to double the changeovers, then running 1,000-pound rolls will cut the batch size in half, reducing inventory and cycle time.

3. Aggressively pursue reductions in changeover time, using techniques such as single-minute exchange of dies (SMED). And understand that SMED is not a one-and-done process: After the benefits of a successful SMED event have stabilized, go back and do it again. New opportunities for reduction may be revealed. Toyota invented SMED, and it still took the company 20 years to get from several hours to several minutes for stamping die changes.

4. In cases where the equipment doesn’t require large lots or batches, use economic production quantity (EPQ) calculations to determine if moving to smaller batch sizes will be more cost effective. EPQ is a classic way to calculate the most economical lot or campaign size by approximating the best balance between total changeover costs and inventory carrying cost. Larger campaigns require more inventory to supply customers or downstream operations while specific products are not being made; smaller campaigns require more changeovers.

One-piece flow in action

In the 1980s, Luvs launched a highly successful market innovation for boy- and girl-specific diapers. The ad campaign highlighted customized absorbency features for each gender, emphasizing a better fit and improved leakage protection. Volume increased by 30% almost overnight, and the business soon began running out of manufacturing capacity.

Luvs developed a simulation, which showed that no amount of inventory was as effective as short production cycles in achieving high customer service levels. So, to make short cycles possible, workers minimized changeover losses by dedicating production lines by size. Because a size changeover took most of a production day, dedicating lines by size avoided size changeovers entirely.

Luvs diapers were produced at six sites across North America. The strategy had been for each site to be self-sufficient in product mix in order to minimize distribution costs. Instead, leaders decided to dedicate product families to specific plants, accepting the interplant shipments as an additional way to simplify changeovers.

The next part of the strategy was to produce every size and language variation every week, in a repeating cycle. From a finished product inventory standpoint, there was no longer cycle stock for the high-volume products, as production occurred every day to match demand. The low volume count variations required cycle stock, but only to cover one week.

The line operators now had stable sequences and got really good at the remaining changeovers and startups from changeovers. Customer service remained high, and out-of-stocks were avoided. Production efficiency improved from about 70% to the high-80% range, and inventory turns tripled.

Proven advantages

Diaper producers are no more able to go all the way to one-piece flow than potato chip manufacturers, but Luvs demonstrated the dramatic benefits achieved by simply aiming in that direction. Strategically reducing batch sizes, implementing cellular flow and cutting changeover times can lead to dramatic improvements in customer service, production efficiency and inventory turns. The goal isn't necessarily a lot size of one, but to continuously optimize flow and eliminate waste, securing a more agile and profitable future.

Master the principles of production flow, inventory management and lean operations with ASCM’s Certified in Planning and Inventory Management program. You’ll gain the know-how to successfully work across all functions of the supply chain, effectively manage risks and disruptions, and leverage technology to streamline processes.

Ask ASCM: Please Simplify Digital Twins

Mon, 09 Jun 2025 00:00:00 -0500

Editor’s note: What’s on your mind? Submit a supply chain question to Editor-in-Chief Elizabeth Rennie at erennie@ascm.org. If yours is selected, she’ll research the topic and share the answer in the ASCM Insights Blog.

Reader J.B. asks: I’m fairly new to the supply chain field and am interested in learning more about digital twins. The topic is so complex that I’m having trouble even understanding exactly what they are. Can you break it down for me?

Defining digital twins is trickier than it sounds

When dealing with a subject as complex as digital twins, it’s always best to begin with a definition. Unfortunately, depending on who you ask, a digital twin can be explained in many different ways: an integrated replica of a product intended to reflect manufacturing defects; a sensor-enabled model that simulates a physical object in a live setting; the digital version of the physical, based on historical, current and predicted future information. I once worked on a feature article about digital twins and noted that my interviewees all gave similar, yet distinctly different, definitions!

Getting a clearer picture

Luckily, our trusty ASCM Supply Chain Dictionary has a very nice explanation: A digital twin is an exact virtual replica or model of a real-world process, product, or service used to digitally simulate, test, model and monitor it. So, digital twins enable manufacturers to build virtual replicas, from design and development to the end of life. The technology then mirrors its exact counterpart in the real world.

Why digital twins matter

Companies benefit from digital twins because they model the way things interact with their environments, enabling users to foresee potential outcomes. As every shop floor manager knows, the slightest supply chain interruption can affect everything that follows. This is why digital twins are so exciting: They make it possible to not only address, but actually prevent, potential disruptions and keep supply chains as productive as possible. In the current global landscape, characterized by increased volatility, uncertainty, complexity and ambiguity, the ability of digital twins to predict and mitigate disruptions has become even more critical.

Digital twins also provide essential data about an item’s design, the system that built it and how it is used. They rely on thousands of sensors, which are distributed throughout the physical manufacturing process. They deliver masses of cumulative measurements in a wide range of dimensions — everything from the behavior of machinery to environmental conditions in the factory itself. The information is continually communicated, aggregated and analyzed, with the ultimate goals being to optimize processes, detect current and potential physical issues, predict results, and build better products. Over time, the technology uncovers undesirable performance trends compared with an ideal range. Furthermore, the integration of digital twins with advanced analytics, AI and machine learning has significantly enhanced their predictive capabilities and ability to identify subtle patterns that human analysis might miss. This allows for more proactive and precise interventions.

How digital twins work

When working on the aforementioned article, I had the opportunity to interview Christian Urnauer, a specialist in digital manufacturing and doctoral candidate at the Institute of Production Management at the University of Darmstadt. He recounted his experience working with simulation models of production plants. Urnauer told me critical preliminary steps are tool selection and definition of scope. To help you get started, he suggested considering the following questions:

What are the core functions that must be modeled by the digital twin?
Which assumptions and simplifications can, or need to, be made?
What is the input for both real and simulation data?
What output will be monitored?

“This way, I could define the scope and make sure that I didn’t get lost in details that are not of importance,” he explained. “When I started to build the model, I asked myself the same questions again.”

Ensuring supply chain success

Verification and validation are also vital phases for ensuring successful application of a digital twin and increasing its reliability and acceptance. Validation requires assessing whether the digital twin serves the purpose for which it was intended; verification involves confirming if model components and functions are working properly. Experts also recommend creating a digital version of supply chain flows and tapping into data from multiple systems. This often involves integrating data from enterprise resource planning, transportation management and warehouse management systems, as well as external sources such as weather data or geopolitical news feeds, to create a truly comprehensive and dynamic representation of the supply chain.

Digital twins offer uniquely realistic glimpses into the future. To learn more, check out ASCM’s Supply Chain Technology Certificate, and help your supply chain organization advance via truly data-driven decision-making.

Submit your supply chain question by emailing Editor-in-Chief Elizabeth Rennie at erennie@ascm.org.

Top Brands Prove Sustainability Drives Profit and People

Fri, 06 Jun 2025 00:00:00 -0500

From the iconic outdoor gear of Patagonia to L'Oréal’s global beauty empire to household staples from Nestlé, leading companies are proving that a sustainable supply chain is both environmentally impactful and essential to running a resilient business. These industry giants have set ambitious environmental goals, transformed their operations and discovered an often-overlooked benefit: Building a greener supply chain dramatically boosts employee engagement and retention.

Outdoor apparel company Patagonia is among CNN’s “most sustainable clothing brands to help you feel better about your closet.” The article notes the company’s use of Fair-Trade-Certified factories and sustainably produced fabrics. “CEO Yvon Chouinard even went so far as to donate 98% of Patagonia’s stock to the Holdfast Collective, a nonprofit that combats climate change,” the story notes.

Patagonia’s sustainable supply chain is centered around environmental management systems, minimal water use, energy savings and overall waste reduction. The business is especially cognizant of supplier practices, enforcing standards that go significantly beyond what’s legally required. Further, Patagonia is implementing a raw-material supplier, carbon-reduction program with a goal of cutting Scope 1 and Scope 2 emissions by 80% and Scope 3 emissions by 55% by 2030, compared to 2017, with continued reductions moving forward.

Also in the news, L’Oréal Groupe has reached the halfway point of its L’Oréal for the Future program, launched in 2020, which aims to “steward the climate transition, safeguard nature, drive circularity and support communities.” The circularity initiative outlines the company’s intention to reduce the use of virgin plastic by 50%, compared to 2019; source 50% of packaging materials from recycled or biobased sources; and reduce packaging overall by 20%.

The business has already accomplished a great deal: As of 2024, it’s using 97% renewable energy at operated sites; 66% of ingredients are biobased, derived from abundant materials or from circular processes; and 76% of generated waste is reused or recycled, according to its 2024 ESG report. Further, L’Oréal Groupe unveiled a new sustainable innovation accelerator program to identify, pilot and scale key technologies such as 3D printing and virtual and augmented reality to encourage continued advancement.

“This supply chain transformation isn’t just a response to pressure; it’s a core part of L’Oréal’s long-term competitive advantage,” according to Direct Industry. “For a company that reinvents a third of its portfolio every year, building a responsive, intelligent and sustainable supply chain may be its most important innovation yet.”

Meanwhile, food and beverage conglomerate Nestlé is focusing on sustainable farming to ensure ingredients are cultivated responsibly. The company has set 2030 as a benchmark for improved environmental practices — namely responsibly sourcing 100% of its key ingredients, including cocoa, grains, coconut, coffee, hazelnuts, sugar and paper. As of 2024, it has reached 44.5%. According to the website, its regenerative agriculture training enables farmers to reduce crop disease, improve bean quality, rejuvenate plantations and manage land more sustainably.

“Our mission is to advance regenerative food systems at scale,” Antonia Wanner, Nestlé CSO, told Sustainability Magazine. “Achieving this is not without challenges, and I’m excited to come together with fellow sustainability professionals across public and private partners to share candid challenges and strategies for continuing to improve our impact.”

A better work environment

Doing more and better for our planet is obviously the primary goal of sustainable supply chain management. But there’s another big plus, according to collaborative research from ASCM and Gartner: Sustainability mandates improve employee engagement and retention. This brand-new study explores why involving employees in these initiatives enhances resilience and why organizations with rigorous sustainability mandates report such positive employee metrics. Download the report today, and learn how prioritizing sustainability can prime your network for superior talent outcomes.

Activate Your Supply Chain for a Digital Future

Thu, 05 Jun 2025 00:00:00 -0500

The increased availability of quality data and exciting technological advancements are outdating traditional supply chain organizational structures. Blockchain is changing the way materials are tracked from the source to end use. Robotic process automation is eliminating the need for humans to handle repetitive tasks. And the sharing and gig economies are transforming conventional workflows.

Functional governance models, the predictability of outcomes, product and service quality, risk management, documentation management, and more are soon going to look radically different. Developing a supply chain organization that can compete under these challenging circumstances therefore should be foremost on the minds of industry professionals. A network that is prepared will gain a significant competitive advantage over its competitors.

Unfortunately, supply chain’s generic response to shifts such as these has been to add more layers to the existing organization in order to manage complexity and reduce risk. These layers take the form of additional processes, unwieldy governance structures, added employees and more departments. To maximize the opportunities of digital transformation, supply chain needs a new philosophy.

Enable the shift

Supply chains now and in the future are challenged by geopolitical developments, technological advancements, changing business needs and regulatory risks. Regrettably, proposed remedies invariably, once again, revolve around adding more layers to the organization.

There are two possible solutions to any change-management problem: an incremental response for an incremental change or a radical solution for a radical change. The dramatic shifts taking place as we enter the world of digital supply chain mean that we must choose the radical model. Following are strategies to make this work at your supply chain organization.

Design the network. The business outcomes you are seeking to deliver ideally should come from the company’s mission statement and long-term business plan. Create an internal organizational structure that delivers these outcomes with the lowest degree of separation from stakeholders. It also is necessary that the structure be designed in an iterative, agile manner, instead of the conventional build-operate-maintain model. To reevaluate your organizational framework, first design internal processes by linking organizational nodes and technologies directly to business outcomes. Next, leverage the power of your ecosystem. Think of solution providers as nodes within the broader network. Organize suppliers based upon spend and risk potential. Finally, evaluate the degree of separation between a business user and the outcome for each network node with a view to shortening the need-to-fulfillment time frame.

Consider a business that relies on 10 suppliers to manage a supply chain that delivers assembled products to its customers. Each group that uses parts from one of the 10 suppliers is front-line. To get the parts needed to begin assembly:

Front-line teams make a part request in a new tool that the sourcing group is using for its activities
Sourcing then interacts with legal to prepare the contract
Ongoing supplier-management tasks are handled by the contractor-relations group
Enterprise resources planning entries are managed by a completely different team.

Of course, all of these internal layers extend the need-to- fulfillment time frame for the front-line group significantly.

On the other hand, the ideal digital supply chain would enable team members to make requests in the shortest possible time frame, just like ordering products from Amazon or getting a ride from Uber. Consider the improvements if this company instead used an internal team to manage the top three suppliers because of the importance of the parts supplied, a third-party logistics (3PL) or third-party procurement provider to manage the next five, and a shared services center to manage the last two.

Moreover, could this company use an automated tool to handle tasks such as contracting for low-risk parts, expediting, invoicing, ordering and the like? Might the business be better able to maximize the strengths of its supplier network, such as by leveraging a 3PL with strong forecasting, scheduling and dispatching skills to manage carriers? Likewise, is it really necessary to manage warehousing when a freight forwarder could use an outcome-driven contract instead by delivering products on a fixed schedule? Digital control tower tools also could help maintain visibility and ensure high performance levels.

Implement effective governance. Next, establish an effective governance mechanism — preferably one that involves business stakeholders. A governance mechanism that excludes the end users puts the supply chain function at risk of falling out of sync with the business. Consider the role of your internal stakeholders in ensuring that the right initiatives are being prioritized. Do they have a say in decisions that will affect their ability to execute?

Ensure consistent execution. Invest in a long-term approach to executing this strategy by ensuring that execution is paired with a well-thought-out transformational plan that revolves around continuous and consistent communication. Resist the urge to add layers to manage new risks. Your goal is to empower end users to rapidly satisfy business needs at the best value point. The need-to- fulfillment time frame is the key success metric.

Validate and adapt. Leverage technology to spot any variations from intended results. Invest in data- management tools and a process that helps you select the right partners — both internal and external — in order to rapidly respond to changes in your business environment. Frequently, organizations fail to recognize that external partners can be an effective means of measuring success against the broader industry. Execute the proposed changes over time and in an agile manner. This will enable you to make small course corrections and ensure that the final structure is a fit for your business environment and organizational culture.

Develop your workforce. Radical organizational change, driven by technology, requires an equally radical workforce transformation. The immediate need is upskilling and reskilling existing employees. Traditional roles will evolve, demanding new competencies in data analysis, AI oversight and management, and technology management. This signifies a fundamental shift from task-oriented to strategic, problem-solving roles. Supply chain professionals will become architects and strategists, identifying complex issues, leveraging data, designing solutions, and collaborating across stakeholders to continuously optimize and adapt the network.

Understand the risks

As with any significant change, there are several risks associated with this proposed approach, which must be anticipated and addressed:

Get the design framework right. Starting the process with a poor understanding of business outcomes will lead to an organizational design that is unfit for the needs of the organization.
Be certain that the final design is flexible enough to adapt to any changes in the environment.
Prepare your supplier base. Your ability to deploy these changes will be contingent upon selection of the right business partners with the right mix of capabilities. If your ecosystem is not in step with your proposed strategy, reevaluate your partners or invest in upgrading their capabilities.
Not all available technologies will be a fit for your business. Take a build-versus-buy approach, and be sure technology deployment time frames are factored into the execution strategy.
Overcome resistance to change by focusing on benefits to the organization and always being candid about potential risks.
As previously noted, it's essential to prepare employees. Supply chain organizations on the verge of technological evolution often discover scarcity of talent to be a major hindrance to success. Review the skill sets required for future needs, and invest in building capabilities across the ecosystem.
There always is the possibility of external changes (raw material prices, regulations, the economy and so on) disrupting even the best-laid plans. Adopt an agile approach to your redesign by considering multiple deployment sprints.

In the end, no two organizational designs will look alike. Your eventual network will rest on your particular business needs, ecosystem capabilities, technologies, tools, risks and the broader economic environment.

Realize the value

When your supply chain is responsive and flexible, it can react to marketplace shifts more quickly, reduce its cost to serve, minimize personnel fluctuations and use its core competencies in a highly effective manner. Plus, it will become outcome-driven, rather than process-driven.

Meanwhile, thanks to the effective application of exciting new technologies — such as machine learning, robotic process automation and artificial intelligence — your business will be able to automate repetitive tasks and dedicate staff time to more value-added projects. Finally, heightened collaboration and data sharing among stakeholders will provide everyone with a holistic picture of the supply chain and ensure that this end-to-end, data value chain benefits the entire enterprise.

Want to be sure your supply chain is functioning at its highest capacity? Use our SCOR DS model to identify where optimization is needed most.

Editor's note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was June 24, 2020.

ASCM Research Proves Stability and Success in Supply Chain

Mon, 02 Jun 2025 00:00:00 -0500

In an era defined by rapid change and persistent global complexities, the supply chain profession offers a unique blend of stability, strong earning potential and genuine satisfaction. This reassuring message comes through loud and clear in ASCM’s 2025 Supply Chain Salary and Career Report. Drawing insights from more than 3,500 supply chain professionals, the report paints a vibrant picture of an industry that not only endures, but thrives amid volatility.

Following are some of the key findings that highlight why a career in supply chain is a smart move for your future.

Competitive compensation

For the second consecutive year, the median U.S. supply chain compensation soars to six figures, settling at an impressive $103,000, including bonuses. This figure stands a remarkable 52% higher than the national median, solidifying supply chain as a field with significant earning potential. This competitive compensation reflects the critical value businesses place on skilled supply chain professionals, recognizing their direct impact on efficiency, resilience and profitability.

A dynamic job market

The report paints a picture of a flourishing job market, with a strong 66% of U.S. supply chain professionals expressing optimism about their career prospects. The data further reveals a dynamic landscape characterized by significant job mobility and advancement, particularly for younger professionals. This indicates both fulfilling available roles, as well as clear opportunities for upward progression.

Positive work environments and flexible arrangements

Beyond the paycheck, the 2025 report reveals that supply chain professionals generally experience supportive workplaces and a healthy work-life balance. A significant 62% of respondents report a positive company culture, while an even more impressive 78% benefit from flexible work arrangements. Furthermore, 64% of individuals feel their jobs allow for a good work-life balance, suggesting a widespread sense of equilibrium between professional and personal lives.

The data also provides insights into typical work hours, with 67% of supply chain professionals globally working 45 hours or less in a typical week. Canada stands out with 83% working within this range, while in the United States, 66% of respondents work 45 hours or less, and in Europe, the figure is 72%. While a combined 11% of individuals work more than 50 hours per week, reflecting longer hours in certain segments of the industry, the overall trend points toward a more sustainable work-life integration.

Professional development pays

The ASCM research also explored the value of supply chain education. Following are key findings.

The power of APICS certifications: Investing in professional development directly translates into tangible financial benefits, as evidenced by the report's findings on certifications. Supply chain credentials are a key differentiator for professionals, directly leading to higher median salaries and enhanced career prospects. Individuals holding at least one certification, whether from ASCM or another recognized organization, enjoy a median salary 8% higher than those without any certifications. This advantage further increases to 14% for individuals with two or more credentials. Focusing specifically on APICS certifications, the data shows a median salary increase of a substantial 20% compared to those without these designations.

The report further highlights the constructive alignment between academic background and professional certification. People with a bachelor’s degree in supply chain management and at least one APICS certification command a median salary of $100,000. This is an impressive 18% higher than the $85,000 median salary for those with a supply chain bachelor’s degree but no APICS certification. This clearly demonstrates the significant financial advantage and robust return on investment for professionals who combine specialized academic training with industry-recognized certifications.

Evolving skillsets

The report also delves into the key skillsets in today's supply chain. Beyond technical proficiency, the most sought-after professionals possess an effective blend of interpersonal skills. This emphasizes that navigating the complexities of global supply chains requires not just analytical prowess, but also strong communication, collaboration and problem-solving abilities. As the industry continues to evolve and embrace new technologies such as AI and automation, the human element of strategic thinking and collaborative leadership remains paramount.

In a world brimming with uncertainty, the 2025 ASCM Supply Chain Salary and Career Report offers a beacon of stability and opportunity. It reinforces that a career in supply chain is not just financially rewarding, but deeply satisfying, providing a resilient and dynamic path for professionals eager to make a tangible impact on the world.

Championing diversity, equity and inclusion

The ASCM research shed light on crucial DEI trends within the supply chain, with some positive findings but also clear room for improvement.

Gender pay gap persists: A promising finding is that women in their first two years of a supply chain career report a median salary 10% higher than their male counterparts, a difference of approximately $7,000. However, this trend reverses as professionals advance, with men consistently reporting higher median salaries later in their careers. The gap widening even more after 20 years in the field. This disparity is likely influenced by factors such as career breaks, hours worked, negotiation dynamics and occupational segregation.

The report emphasizes the continued need for creating clear career paths for women, actively promoting DEI initiatives, and fostering fair growth and compensation opportunities for all people throughout their careers in supply chain. This focus is vital for building a truly equitable and representative industry.

Navigate your career with data

The ASCM 2025 Supply Chain Salary and Career Report is a testament to the essential and evolving nature of supply chain roles. As CEO Abe Eshkenazi notes, "Even as they navigate unprecedented disruptions and complexities, their ability to adapt, coupled with a potent blend of technical expertise and interpersonal skills, translates into both strong financial rewards and a deep sense of professional fulfillment."

Dig into these details by downloading the full Supply Chain Salary and Career Report.

6 Things Supply Chain Professionals Need to Know About AI

Fri, 30 May 2025 00:00:00 -0500

AI continues to offer significant benefits for supply chain operations everywhere. In fact, AI earned the number-one spot on ASCM’s Top 10 Supply Chain Trends in 2025, spotlighting advances happening at an unprecedented rate and offering many immediate advantages. This transformative technology is reshaping how goods move, data flows and decisions are made, fundamentally changing the landscape for supply chain professionals. As AI adoption accelerates, understanding its capabilities, limitations, nuances and future trajectory is crucial for leading future-ready, resilient and responsive networks.

What is AI in supply chain?

AI in supply chain refers to computer programs trained to perform complex actions that typically require human intelligence, such as understanding language, analyzing data, making recommendations or creating new content. Specific to supply chain, this includes optimizing inventory and delivery routes, predicting demand, automating warehouse operations with robots and drones, evaluating suppliers, and enhancing risk assessment across global networks. AI also powers tools such as augmented reality, digital twins and process automation, even handling tedious jobs such as cycle counting.

To simplify what you need to know to use AI successfully, here are six key points.

1.) There’s no need to fear: AI has existed — and we’ve been using it — for a long time. The concept of AI has been around for more than 70 years, since Alan Turing published "Computing Machinery and Intelligence" in 1950, which ultimately set the stage for AI. In the 1960s, MIT developed Eliza, an early ancestor of today’s chatbots commonly used for online customer service. Other types of AI were developed to be very good at a specific task, such as winning at chess or “Jeopardy!” This is the kind of AI that is most commonly integrated into supply chain and manufacturing environments to automate a specific, repetitive task and free humans to do more complex work.

2.) AI is not going to take your supply chain job — but will likely change it. Yes, some jobs will become obsolete with AI use increasing, but new jobs will appear in support of AI tools. In fact, 50% of surveyed companies expect new jobs to be created as a result of their adoption of AI. Most of these will be higher paying, safer and more fulfilling. It’s seeming more and more evident that the supply chain professionals who need to worry are those who do not embrace AI.

3.) AI requirements. It’s crucial to figure out how AI makes the most sense for your company or operation. Build a portfolio of use cases that show how it will benefit your supply chain, especially in areas such as route optimization, sales forecasting, product categorization, safety stock calculations, supplier management and warehouse management. Also consider future uses. Then, take a careful look at the expected return on investment from each implementation option, and prioritize your AI implementation goals based on that.

4.) AI relies on massive amounts of good data. This data can come from an enterprise resource planning system, a warehouse management system, financial records, business directors, weather data and more. But whatever data you use, ensure it is relevant, accessible, accurate, complete, up-to-date and reliable. One approach is to focus on gathering a smaller amount of quality, relevant data to start and then enrich the pool as new data becomes available.

5.) There’s plenty that AI still isn’t good at. AI is still learning and developing — not unlike humans. The technology is prone to hallucinations (generating content that has factual or reasoning errors). Therefore, humans need to review outputs before acting on them. If companies fail to do this step, they could face significant financial and operational consequences. It may be best to limit AI use to back-office activities at first until you feel confident your tool can be a reliable asset. Then, you can move forward with customer-facing interactions, strategic decision-making or even autonomous operational control — within well-defined parameters.

6.) People are the real power behind AI. The human touch is an essential element of successful use of AI, yet a skills gap still exists. The best and most cost-effective strategy is to upskill yourself and your team. Take the first step with ASCM’s Technology Certificate. This industry-leading program delves deep into the world of AI, as well as advanced analytics, cybersecurity, additive manufacturing and much more to help you stay well ahead of the curve.

The future of AI in supply chain

In the years to come, AI is likely to enable increasingly autonomous, predictive and interconnected networks. It will move beyond specific task automation to drive end-to-end orchestration, leveraging generative AI to create sophisticated scenarios, continuously optimize operations in real-time and significantly enhance resilience against disruptions. This evolution will lead to supply chains that are not only more efficient and cost-effective, but also more sustainable and capable of adapting proactively to global market shifts, fundamentally transforming how goods are planned, sourced, made and delivered.

Learn how you can use new AI skills to stand out in the marketplace with the Supply Chain Salary and Career Report. Download your copy today.

Strategies for Closing Your Supply Chain Skills Gap

Fri, 30 May 2025 00:00:00 -0500

Industry experts say the worldwide supply chain industry grows at an impressive rate of 11.2% per year. Furthermore, for every six job openings, there’s only one qualified individual within the supply chain workforce. To address this ongoing skills gap and prepare to lead the networks of the future, industry professionals must hone their current capabilities and continuously develop new ones.

What is a skills gap?

Start by understanding key elements involved. A skills gap refers to the disparity between the skills an employer needs or expects their workforce to possess and the actual skills their employees (or potential employees) currently have. This mismatch makes it challenging for organizations to fill open positions, meet business objectives or adapt to evolving industry demands. Skills gaps can encompass both technical and interpersonal attributes.

The supply chain industry is particularly susceptible to skills gaps due to its rapid evolution driven by technology, globalization and shifting market demands. “Advanced technologies are shaking up the supply chain world,” according to KPMG. “With quickly evolving capabilities across generative AI, data analytics, automation, machine learning, the internet of things, blockchain and more, the ‘smart’ supply chain is well on its way to becoming the new normal.”

How to close the skills gap

To prepare for these extraordinary shifts, first, conduct an audit of your current skillset. Identify areas of strength and weakness, then think about how you can better position yourself professionally. Consider formal assessments, peer feedback and self-reflection on past projects to gain a comprehensive understanding of your capabilities. Pinpointing specific areas for growth will enable you to target your development efforts more effectively.

Next, hone your technological expertise. Information systems are at the heart of most business processes, so you’ll make better decisions when you understand how they work. Similarly, learn all you can about the latest innovations — artificial intelligence, automation and the like — in order to apply them effectively. In addition, look to advanced analytics to help you maximize the data sets created by your networks. Risk management is also essential for today’s modern supply chain workforce. Operating in our volatile environment demands the ability to anticipate, assess and respond to disruptions. As new and better products, processes and services enter the market, understanding risk management can help supply chain managers ask the right questions, quantify potential threats, build contingencies and boost their supply chain responsiveness. This ensures the organization can mitigate effects or recover swiftly, protecting operations and customer satisfaction.

Another key strategy is to develop a holistic leadership style. In global networks, true leadership extends beyond individual functions. A holistic leader understands the interconnectedness of every node, from sourcing to delivery. This comprehensive view enables more effective control of the entire network from a single point of command, unifying diverse teams and technologies under a shared vision. Such leadership drives positive, systemic change, optimizing the whole supply chain for efficiency, resilience and sustainability.

Prioritize ongoing advancement

As technology transforms our supply chains, professionals must blend the latest innovations with their understanding of fundamental processes in order to achieve strategic, next-generation networks. ASCM is dedicated to helping you achieve this goal with the Supply Chain Technology Certificate. You’ll discover how to fully leverage AI, advanced analytics, cybersecurity and additive manufacturing. And you’ll equip yourself with the skills necessary to enhance transparency, streamline operations and accelerate delivery through data-driven insights and automation.

Plus, elevate your career even further with essential knowledge from the brand-new 2025 Supply Chain Salary and Career Report. Gain unparalleled insights into in-demand skill sets, compensation trends and high-growth sectors within the field. By understanding how your capabilities benchmark against industry standards, you can confidently plan your next professional moves, negotiate effectively and make data-driven decisions to accelerate your advancement in this vital field.

Editor's note: Due to new research and insights, this blog has been updated. The original publication date was April 29, 2020.

A Promising Start for New Graduates

Fri, 30 May 2025 00:00:00 -0500

It’s a tough time to be entering the workforce. Economic uncertainty is slowing hiring; a talent gap persists between candidates' skills and evolving market demands; and AI's rapid ascent is displacing routine tasks, making traditional entry-level pathways less certain. As another batch of high school and college seniors throw their proverbial hats — or more accurately, mortarboards — into the employment ring, many will face unprecedented challenges in charting a career path.

Fortunately, some grads received valuable guidance from the CEOs, entrepreneurs, writers and celebrities who gave 2025 commencement speeches. Here's some of the best advice:

At UC Berkeley, KIND Snacks founder Daniel Lubetzky counseled students to take advantage of their youth, because it’s “made up of grit, fearlessness, creativity, love and forgiveness,” key skills for career progress and success.
George Mason graduates heard from Martina Cheung, president and CEO of S&P Global, who directed them to “collect experiences over promotions. Those often come in lateral moves, changing industries or organizations, or even taking on extra work. ... Different roles can make you a better leader.”
Jessica Livingston, cofounder of Y-Combinator, urged Bucknell seniors to “find the people you think are interesting and ask them what they’re working on.” She added that we all have the power to reinvent ourselves and explore. The key is to connect with interesting people to reveal new passions and ambitions.
At Georgetown, Michael Psaros, cofounder and managing partner of KPS Capital Partners, stressed the importance of having a passion, purpose and mission in life. His remarks highlighted how these foundational elements are critical for professional advancement and fulfillment.
Another speaker who believes in purpose is Jason Gay of The Wall Street Journal. He offered the following words of wisdom to UW-Madison grads: “Life is a series of choices, experiments, setbacks, misdirection, detours, breakthroughs, good luck, back luck, failures, successes, happenstance, heartbreak and celebration.” He concluded by stressing the importance of purpose for providing essential landmarks when navigating the inevitable twists and turns of a professional journey.

Research proves professional success

And speaking of purpose, all of us in supply chain know this is a field that combines financial success with personal fulfillment. Time and again, research confirms industry professionals enjoy both strong salaries and significant career satisfaction. It’s also a career path with straightforward, consistent and meaningful advancement opportunities.

These findings and many more are highlighted in the brand-new 2025 ASCM Supply Chain Salary and Career Report, a compilation of responses from more than 3,500 supply chain professionals around the world. Plus, ASCM members can get an insider’s look at the research from a supply chain recruiter in an upcoming webinar. To access this and numerous other member benefits, join ASCM for just $10 a month. My best advice for this year’s graduates? Start your career in supply chain with ASCM!

Costly Cookouts May Burn Through Summer Budgets

Fri, 23 May 2025 00:00:00 -0500

On Monday, we in the United States will celebrate Memorial Day, commemorating the millions of people who have died during military service. I’m proud to mark this date and reflect on the sacrifices made to protect freedom. As we honor those who served, the long weekend also traditionally kicks off the unofficial start of summer — filled with beach time, picnics, camping and cookouts. Unfortunately, the prices of these celebrations could put a significant dent in our holiday budgets.

According to food and agribusiness financial firm Rabobank, the cost of hosting a cookout will be 4.21% more expensive this year. Ongoing trade disputes are, of course, a factor. Yet it’s not just tariffs that are to blame for the higher grocery bills: “Beef prices are rising due to weather-related processing delays, strong consumer demand and a U.S. herd that is rebuilding,” FoodNavigator reports, adding that prices are up 6.44% over last year.

As consumers look for more affordable protein alternatives, poultry prices are also surging. Further, FarmProgress reports that another reason for chicken’s increased cost — up a significant 15.67% — is disease. (Who could forget the soaring price of eggs after the devastating bird flu outbreak?) Thus far, farmers are still challenged to normalize production.

Another pricey culprit on the picnic table are tomatoes. As with beef, 70% of tomatoes consumed in the United States are imported, bumping costs 16.87% year-over-year. Plus, starting on July 14, fresh tomatoes from Mexico will come with an added 21% duty, following recent actions by the U.S. government. Besides tariffs and trade flows, FarmProgress also pinpoints input, regulatory and labor costs as the primary drivers of the increased prices.

In fact, agriculture is facing a shrinking workforce and experiencing ongoing difficulty attracting and keeping talent. Per FoodTech: "Labor shortages have become one of the most pressing challenges in the food industry in 2025. The sector is experiencing a shrinking workforce due to an aging labor pool, negative industry perceptions and lingering effects of global health crises."

As I recently told Newsweek, “Younger people aren't as interested in doing manual jobs. ... The domestic supplier ecosystem, transportation, rail, warehousing — they all need to be developed. The infrastructure just isn't there in the short term."

Of course, in order to combat these shortages, companies are forced to offer higher wages and other incentives, which directly translate into increased operational costs that are passed on to consumers, dampening summer celebrations.

Strategic sourcing is the secret ingredient

Supply chain professionals know all about the importance of prioritizing cost-cutting measures. To boost your own procurement know-how and help your organization become more competitive, check out ASCM’s Supply Chain Procurement Certificate. You’ll learn how to develop an expert strategic sourcing strategy, engage in effective contract-management negotiations, review procurement performance using data and metrics, and engage in sustainable and ethical sourcing — all crucial steps in lowering prices from the start. Armed with the ASCM Supply Chain Procurement Certificate, you’ll be able to tackle escalating costs head-on and help your organization avoid a costly financial flare-up.

The Journey to Digital Procurement Transformation

Thu, 22 May 2025 00:00:00 -0500

Technology's impact on a supply chain organization hinges on the adaptability of its leadership, a truth particularly salient in procurement. Successfully navigating and leveraging digital transformation demands that procurement professionals strategically consider several key factors.

The first step is a critical evaluation and potential redesign of existing procurement processes. Obviously, digitizing flawed processes merely amplifies their problems. This is followed by automation, when the refined, digitally enhanced processes are implemented. Subsequently, clear objectives and plans must be communicated across the organization to employees, customers and stakeholders. The evolving landscape may also necessitate adjustments in leadership and employee capabilities. Explore strategies for talent upskilling to align with the new digital framework. Finally, a thorough assessment of the company's digital maturity is crucial.

6 procurement process improvements

1. Build a resilient foundation. Embarking on a digital procurement journey begins with lean thinking to streamline operations, reduce waste and lead time, and ultimately meet customer demands for service and quality. Integrating six sigma principles further strengthens this foundation, enabling data-driven process improvement and delivering significant performance enhancements.

Next, meticulously map both manual and automated activities within the organization, identifying and eliminating those that offer little value. Key tasks include prioritizing processes for digitization and assembling a dedicated project team. This team will define the project's context, vision and strategy. True digital transformation transcends simply applying technology; it requires envisioning novel ways of working, even independent of technological focus, to unlock new efficiencies.

Procurement professionals must also construct a compelling business case that clearly justifies the rationale for embracing digitization. It should underscore the value proposition, highlighting improvements in speed-to-market, cost reduction and enhanced agility, responsiveness and customer-centricity — all vital for supporting the overarching business strategy. Crucially, this initial phase must also incorporate risk assessment and mitigation, integrating tools and processes to proactively identify and address potential disruptions. In particular, consider geopolitical instability, natural disasters and supplier financial vulnerabilities. Developing robust contingency plans, outlining what-if scenarios and corresponding responses, is equally essential for building a resilient procurement function.

Once a clear digital strategy and a persuasive business case are established, transparent communication with employees is paramount to foster a culture of change and cultivate internal champions. Toward the end of this preparatory stage, a resilient procurement committee can be formed to review and approve process proposals.

2. Establish visibility and sustainability. The project team then focuses on understanding customer needs and defining key metrics for measurement, monitoring and continuous improvement. Mapping the current process state is crucial, encompassing both manual operations and existing automated flows, including applications, systems and automated sequences.

Leveraging data from the data warehouse, when available, significantly enhances the measurement process. The integration of information and communication technology further strengthens lean procurement initiatives in this phase. Key activities include defining improvement areas, setting project objectives, forming the implementation team, analyzing the current environment (organization, vendors, processes, logistics), determining current and expected product and service requirements, identifying opportunities and potential benefits, and establishing implementation plans.

The outputs of this stage should be consolidated into a project charter, a master document that outlines long-term objectives and the impact of digital initiatives on the organization. It should also include process efficiency and savings targets, system capabilities, integration needs, visibility and reporting functionalities, user engagement and adoption strategies, and supplier enablement plans. This stage must also prioritize diversification of suppliers to mitigate single-source risks and build a network of alternatives. Furthermore, an effort to improve supply chain visibility through technology is vital for early identification of potential disruptions.

The second part of this stage involves defining and selecting critical quality metrics and key performance indicators, collecting sufficient data to validate the need and quantify potential benefits, determining specific project goals, and making a go/no-go decision for the subsequent phases.

Environmental, social and governance (ESG) considerations are essential to supplier selection and performance monitoring policies. Implementing supply chain transparency to track and report on environmental and social impacts, adhering to ethical sourcing practices ensuring fair labor and human rights, and exploring circular economy principles for waste reduction and resource optimization are integral to responsible procurement.

3. Leverage advanced insights. In order to continue, at this point, the project team must have demonstrated significant potential benefits from digitization. A phased, multigenerational project plan may be necessary for complex solutions. Piloting the project on a small scale allows for validating the solution's effectiveness before full-scale implementation.

Process redesign may involve eliminating non-value-added activities, restructuring operations to eliminate bottlenecks, outsourcing or centralizing low-value tasks, simplifying and standardizing processes, and optimizing and automating manual activities. Resist the urge to rush; continuous progress with regular, smaller wins is more conducive to long-term success.

Maintaining open communication with all stakeholders, especially supply chain partners, through clear and detailed communication plan is essential. Sharing successful milestones facilitates effective project management and reduces the risk of failure. Securing stakeholder buy-in ensures broader support and considers diverse interests and requirements. Engaging customers early in the design and selection processes is equally important, as their adoption rates significantly affect overall project success. This stage should also emphasize the power of real-time data and dashboards for informed decision-making and the application of advanced analytics techniques, such as statistical modeling and optimization.

4. Integrate intelligence. The architecture design phase focuses on creating the "to-be" process, outlining the sequence of activities for the future. The team must meticulously plan the technical and functional characteristics of all manual and automated components and services. Designing seamless interfaces and synchronizing process flows to ensure consistency and user-centricity is critical.

Internal and external integration are also paramount. Identify opportunities to eliminate unnecessary activities, enhance visibility and strengthen supplier relationship management through e-procurement systems. Continuously measure and enhance performance using the metrics defined earlier, alongside ongoing automation efforts. Removing administrative bottlenecks, such as unnecessary approvals, should be prioritized. For instance, the transformative impact of supply chain machine learning and AI must be considered. This includes leveraging predictive analytics for demand forecasting and bottleneck identification, AI-powered supplier relationship management (SRM) tools for risk scoring and collaboration, AI for procurement fraud detection, and intelligent automation for complex tasks.

5. Implement and engage. This stage involves developing the new physical infrastructure, software and interfaces. Vendors participating in the pilot should be prepared for the changes, potentially with incentives to ensure compliance. Maintaining a robust communication plan remains critical, with regular updates throughout this phase. Clearly communicate the new processes to internal teams before installing and configuring the supporting technology.

Finally, launch the pilot and begin using the new process. Remember that vendors and internal teams are not mere cogs in a machine; their feedback and concerns are invaluable. Empower the operational team to voice concerns. The primary challenge in any significant digitization initiative lies not in technological complexity, but in managing the human element and resistance to change. Replace one-way communication with enterprise-wide engagement through webcasts, internal social networks, discussion forums and blogs.

6. Agile talent and continuous improvement. Continuous monitoring of the implemented process is essential. Unlike previous stages, verification is an ongoing commitment. While procurement leaders should establish deadlines and targets based on savings and efficiency, a culture of continuous monitoring and improvement, with regular reviews and adaptations based on performance and evolving circumstances, is paramount. The ability to adapt swiftly to changing market conditions and disruptions necessitates flexible procurement processes and strong collaboration and communication with suppliers and internal stakeholders to enable rapid responses. Once the pilot is verified, it can be scaled across the organization.

Ultimately, the success of digital procurement transformation hinges on skilled and engaged employees. A common hurdle is the lack of necessary talent. Procurement directors can address this by engaging external consultants with relevant experience, hiring new leaders with the requisite digital acumen, or investing in learning and development opportunities for current employees. This not only enhances digital skills, but also increases engagement and fosters loyalty. The evolving digital landscape demands specific skills, including data literacy and analytics skills, technology proficiency, change-management skills, and strategic thinking and collaboration abilities.

Achieve procurement transformation

Throughout this journey, procurement directors must remain open to new ideas and empower individuals with the skills to champion emerging initiatives. Building upon a strong foundation with a forward-thinking and people-centric approach will ensure a successful and sustainable digital procurement transformation.

Help your team gain a competitive edge with the ASCM Procurement Certificate.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was November 21, 2019.

What Can Machine Learning Do for Your Supply Chain?

Wed, 21 May 2025 00:00:00 -0500

The term “machine learning” (ML) has been around since 1959, when IBM engineer Arthur Samuel coined the term to describe the concept behind his revolutionary invention — a self-learning, checkers-playing program. ML is a type of AI that enables computers to become smarter by performing tasks without any explicit programming.

Supply chain machine learning is ideal for alleviating the headaches associated with many key processes, including issues arising from geopolitical tensions, climate-related events, fluctuating customer preferences and many more. As current events continue to underscore the critical need for resilient and adaptive supply chains, ML's predictive and optimization capabilities are more vital than ever.

How ML can transform your supply chain

The following are six ways supply chain professionals can ensure ML drives desired business benefits.

1. Set clear objectives at the outset. The scientific and iterative nature of ML calls for it to be implemented methodically. Create a charter of what you want to accomplish and why. This should include establishing baseline metrics so you can track how your ML application is performing. It’s also important to consider how your ML initiatives align with broader supply chain resilience strategies, not just efficiency gains.

Gather the necessary data to accurately compare earlier results to those enhanced by ML. This is the best way to gain confidence in your initiative. And because ML systems get smarter over time, having a consistent measurement method is essential to tracking return on investment and outcomes. Consider making this a part of your sales and operations planning (S&OP) effort. In fact, consider expanding this to integrated business planning to ensure a more holistic view that incorporates financial and product life cycle planning alongside S&OP.

2. Embrace probability forecasting. After you’ve set up project goals, build a solid foundation for a successful and sustainable initiative. Probability forecasting is most compatible with ML because it enables planners to forecast at the most granular level and on different time horizons. It also helps people understand the range of possibilities of demand in the forecast.

This method is ideal for supply chains that include a high number of long-tail items and face demand variability and uncertainty. Using this approach, you still get one number that’s associated with the most probable outcome. However, banded around this number is a range of other possible outcomes, each with a different probability. This approach is increasingly valuable given heightened market volatility and the need for robust scenario planning in today's supply chain environment.

3. Walk before you run. A phased approach helps ensure a sustainable ML solution that meets business objectives today and as needs change. This starts with establishing an adaptive, probability-based model for demand forecasting using existing historical data, then layering in more sophisticated ML using external data sources. Reliable demand planning and forecasting in supply chain management is critical to success with advanced ML and yields significant benefits on its own. Following is a typical progression of the phases a company goes through in modeling and applying data:

Phase one involves building a self-adaptive model for probability forecasting, taking into account trends, seasonality, calendars and daily sales patterns. “Small data” is used to create a baseline self-learning model for probability forecasting using historical demand history.

Next, factor in the impact of marketing activities — trade promotions, media events, product introductions and so on. This improves the baseline probability forecast by applying ML technology to existing historical data.

In this external demand-sensing step, the business looks for additional correlations by introducing external and big data sources, such as weather, point-of-sale information, social media and machine-generated data. You might also consider adding real-time internet-of-things sensor data, satellite imagery and news feeds for even richer insights.

In the final stage, specialized business knowledge is introduced from experts across sales, marketing and operations. Again, this information often emerges through the S&OP process. This is also the time to introduce external market intelligence into the model.

It can be tempting to go straight to the external demand-sensing. However, an iterative approach is the best way to determine which data is meaningful and to what degree. It also gives you the opportunity to change course based on what you learn along the way, drawing out correlations with each step.

4. Remember the key dimensions of data. They include:

Data volume: Big data plays to the strengths of ML. It is essential to have the right amount of data to draw upon, from which the model can derive statistical significance. Don’t overlook “small data” related to historic demand.

Data granularity: Unlike approaches where data is aggregated to weed out noise, ML thrives on granularity, examining that noise and using it to find correlations that train the model and make it more powerful. This granularity is increasingly crucial for personalized customer experiences and micro-segmentation in demand planning.

Data quality: As the saying goes: Garbage in, garbage out. Unfortunately, while ML can determine if a specific data stream has a correlative significance, it cannot tell whether that data is reliable. Therefore, projects should include governance programs to clean, filter and maintain information quality through the data life cycle. Always keep in mind the importance of data governance frameworks and AI ethics in ensuring data integrity and model fairness.

Data variety: The more different types of data sources you factor in, the more robust and accurate the planning outcomes can be. This should include both traditional structured data and the integration of unstructured data (customer reviews, social media sentiment, news feeds) and external economic indicators for a truly comprehensive and nuanced view of the supply chain landscape.

5. Operationalize your ML tool. Often, businesses will build an ML solution to tackle a one-off business challenge without considering its long-term worth. For sustainable business value, operationalize your results. Use models that are self-adaptive and do not require continuous tuning. Otherwise, changing business environments will make them unreliable. This is common with traditional demand planning processes that use multiple forecasting algorithms assigned to each item or location according to the demand behavior. The forecast generated by these algorithms degrades as the demand patterns evolve over time.

Isolated ML projects also require continual manual work to refresh the model when business needs change. The better method uses a self-adaptive model as part of a fully integrated solution, with frequent models updated automatically to react to changes. This highlights the critical role of ML operations, a discipline essential for the sustainable deployment, ongoing monitoring and effective management of ML models in production environments.

6. Get the right people on board. ML frees planners to do more value-added, strategic work. As your business changes over time, you’ll have new questions to answer and will need to adjust existing models so they remain accurate and useful. It’s critical to understand the needed skills and resources before kicking off the project. Beyond traditional data scientists, you may also benefit from "citizen data scientists" and cross-functional teams with strong domain knowledge. Consider upskilling talent to enhance digital supply chain knowledge.

Human-machine symbiosis

Part of a supply chain professional’s strategic work is applying domain proficiency. ML can only do so much; business knowledge and process expertise are required to fine-tune models and maximize results. The system will get smarter over time as it factors in human input, and humans will get smarter by learning from the success rate of the probability forecasts. This enables employees to focus on service, work on strategic projects and add their business insights to the system. This human-machine collaboration is key to navigating increasingly complex global supply chain dynamics and achieving true supply chain orchestration.

Real-world ML applications

Heating and cooling systems provider Lennox Industries faced the challenge of managing an ambitious North American distribution network enlargement while transitioning to a hub-and-spoke model with 55 shipping and 161 selling locations. Company leaders wanted to improve service levels and optimize inventories in order to reallocate working capital and balance inventory in the changing network. But the supply chain environment was daunting, with a multi-echelon distribution network about to grow by 250%, 450,000 stock-keeping unit (SKU) locations, many slow movers and new product introductions.

Lennox implemented a transformational supply chain planning solution to dynamically rationalize the inventory mix and design an operational plan that sets inventory stocking targets and balances service levels with inventory cost. ML enabled the business to reliably model highly variable seasonal demand patterns. It sifts through hundreds of thousands of SKU locations to identify clusters of similar seasonality profiles.

This has substantially increased peak period forecast accuracy. In addition, service levels have improved by 16%, inventory turns have increased by 26%, and Lennox is now able to support a significant growth in both sales and market share.

Dairy industry supply chain planning is particularly difficult because products have short shelf lives and demand varies greatly in response to promotions. The Italian dairy producer Granarolo runs thousands of promotions annually, producing 34,000 item-promotion forecasting combinations and causing demand peaks of up to 30 times baseline sales. Its complex supply chain environment is comprised of eight production plants, six logistics technology platforms, 35 transit depots holding inventory, a large fleet of refrigerated vehicles and about 750 merchandisers servicing daily sales. A network of 100 wholesale distributors covers other local markets.

Granarolo uses advanced planning software with ML to optimize the demand plan for perishable products. The software also identifies exceptions and optimizes inventory and logistics to meet demand and minimize waste. Average forecast reliability has grown from 80% to 85%, peaking at 95% for fresh milk and cream and 88% for yogurt and dessert products. Inventory levels and delivery times have been halved, resulting in fresher products and less waste. And Granarolo is enjoying significantly better customer service levels and lower transportation costs.

New demands posed by a British luxury car manufacturer’s client base prompted its board to raise targets for first time availability (FTA) by 2% without increasing inventory. For the first time, the board also wanted to achieve FTA parity across all three of its car categories: heritage (pre-1997), recent production (mid ‘90s forward, but no longer in production), and current (today’s models).

The company uses advanced ML to analyze historical data on consumer behavior to better anticipate customer needs. The tool dips into the company’s vast store of historical data and finds eight completely new categories of behavior. The software then uses these new categories to generate a more accurate forecast. Each day, the ML engine tunes the safety stock for 80,000 SKUs, automatically reducing inventory before creating a replenishment plan to deliver the demanding new target service levels.

After only two months, the car manufacturer reduced the inventory value of its safety stock on the clustered items by 18% and raised FTA service levels to 97.1%. Outcomes continue trending toward significant further improvements in both service levels and reduced inventory.

Navigate supply chain advancements with the ASCM Technology Certificate. Learn how to use AI, supply chain machine learning and advanced analytics to drive innovation.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was January 2020.

The Red Queen Hypothesis

Mon, 19 May 2025 00:00:00 -0500

The Red Queen is a fictional character from Lewis Carroll’s Through the Looking Glass. In the book, the Red Queen explains to Alice that her world works differently: “Here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast!”

Subsequently, the Red Queen Hypothesis was created to explain many concepts in evolutionary biology:

A continuous race among interacting species: As one species evolves a new adaptation, its competitors, predators, prey or parasites also must evolve to counteract that change and maintain their relative fitness.

Staying in the same place: Even with constant evolution, the well-being of a species in its environment might not actually improve over long periods. If a species stops evolving, it risks falling behind and potentially facing extinction.

Reciprocal evolution: This can be seen in predator-prey relationships (faster predators select for faster prey, which in turn selects for even faster predators); host-parasite interactions (hosts evolve resistance, parasites evolve to overcome them); and even among coexisting species (for instance, those that are harmonious but rely on the same food or water sources).

The Red Queen and your career

It’s unsurprising that the Red Queen’s warning can also be applied to business and professional development. In essence, it highlights that ongoing effort and growth are fundamental requirements for staying competitive and progressing in a constantly evolving professional landscape. This might translate to embracing change, pursuing continuous learning and development, or taking on projects that feel a bit outside of your wheelhouse. Importantly, the imperative to evolve comes not from aspirational pursuits, such as a promotion, but from the need to continue providing value in an environment where even running your fastest might not be enough.

Following is a list of key themes related to how to advance professionally by adapting and growing, viewed through the lens of the Red Queen Hypothesis:

Continuous skill development: Just like species must always be evolving in order to survive, people need to continuously acquire new skills and knowledge to remain relevant in a dynamic job market. Stagnation, even with past successes, will lead to falling behind as others advance.

Embrace lifelong learning: The running in the Red Queen's world equates to a commitment to lifelong learning. This includes formal education, certifications, industry conferences, online courses and seeking out new experiences and challenges within your current role. And it requires proactively seeking opportunities for growth, rather than just reacting to required changes.

Adaptability as a core competency: Learning and maximizing new technologies, changing with industry trends, redesigning organizational structures, and problem-solving to address unexpected challenges are all crucial. Professionals who resist change will find themselves increasingly out of sync with the demands of their field.

Cultivating a growth mindset: A belief in your ability to learn and grow is essential for embracing the continuous evolution demanded by the Red Queen dynamic. Seeing challenges as opportunities for development, rather than fixed limitations, fuels career advancement.

Collaboration and networking: The professional landscape is also a co-evolutionary environment. Building strong networks and working well with others exposes you to new ideas, opportunities and perspectives, fostering your own growth and keeping you competitive.

Embracing innovation and experimentation: The business world rewards those who innovate and find new solutions. Monitoring industry trends, technological advancements and the shifting needs of your field allows you to anticipate demands and proactively develop the necessary skills to meet them. This is about running in the right direction as well as running fast. Also be willing to experiment, take calculated risks and learn from failures to "run at least twice as fast" as the competition.

Feedback and self-assessment: Just as species are subject to the selection pressures of their environment, professionals need to actively seek feedback on their performance and identify areas for improvement. Regular self-assessment helps you understand where you can improve.

The Red Queen and your management style

So, what’s keeps your team members from running faster; and, perhaps more importantly, why are you, as a manager, sometimes ineffective at encouraging them to do so?

Adapting and evolving as a management practice can be remarkably difficult. To overcome the inherent challenges, it's important to keep in mind that change typically involves more than a documented update to an employee’s responsibilities and an expectation to reshape interactions with others. Indeed, change can significantly affect a person’s sense of value or belonging.

Change management is often taught through a commitment curve, which explains the stages of personal transition as an individual’s support of an organizational change increases over time and with exposure. The curve implies that a manager should identify an individual’s current stage and provide the requisite information to help them reach the next level.

While the commitment curve might explain the markers and milestones of change management, it doesn’t offer much insight into the nuances of resistance. Those in leadership positions should therefore be careful not to oversimplify this effort or underestimate its significance. The central challenge is how to encourage change, continuous learning and development. Given that evolving environments are uncertain by design — and people are likely trying to understand how to make sense of these scenarios — it follows that individuals struggle with the idea of knowing if and how a particular action will lead to a successful outcome.

You can help by sending clear signals that change is desirable, creativity is encouraged and failures are acceptable. It is also imperative to understand the norms that your team has grown accustomed to within the organization and if any course correction or compensation are needed to ensure the right actions are being shared and reinforced.

You also must account for the context not only with the individual and team, but also at the departmental or organizational levels. There may be a general willingness to embrace change and express creativity. But if there is a distinguished resistance in the broader organization, this will limit the amount of change that can be driven or supported by one person.

Finally, managers often see the need to run more clearly than their teams. Therefore, it is your responsibility to lead. The Red Queen can help with this too:

Embrace the treadmill: As you've now learned, in a dynamic environment, standing still equates to falling behind. Clearly communicate to your team that continuous adaptation and improvement are not optional extras, but necessary for the team's and individual's sustained success and relevance.

Foster a culture of perpetual motion: Encourage a mindset of continuous learning and proactive evolution, rather than reactive responses to immediate threats. Highlight that even incremental improvements contribute to staying competitive in the long run.

Lead with speed: When significant change is required to truly advance, articulate the need for a more substantial effort. Clearly define the desired future state and the compelling reasons for the increased effort, connecting it to tangible benefits and opportunities.

Ultimately, the Red Queen Hypothesis serves as a potent reminder for both individual professionals and the managers who lead them: In a constantly shifting landscape, whether biological or professional, sustained success isn't about reaching a static endpoint but embracing relentless movement. By understanding this imperative, fostering a culture of adaptability and growth, and actively leading the charge for change, you can empower your teams to not just keep pace, but to outrun the competition and thrive in the long run.

Read more about The Red Queen Hypothesis for dynamic teams in the next blog post in this series.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was March 1, 2019.

Great Managers Know Employee Empowerment Isn’t for Everyone

Mon, 19 May 2025 00:00:00 -0500

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was March 1, 2021.

According to the ASCM dictionary, employee empowerment is the practice of giving nonmanagerial employees the responsibility and the power to make decisions regarding their jobs or tasks. Empowerment has its roots in lean management, where employees are empowered to stop the production line if they detect a quality problem. The logic is to stop producing defective products and immediately initiate problem-solving.

How to teach empowerment in management education

As a professor at Bryant University, I teach the core operations management courses at both the undergraduate and graduate levels. I cover employee empowerment in two lectures: early in the semester, when I teach quality management; and mid-semester, during a lean management course.

Train employees for decision-making

During the quality management lecture, I stress the importance of training employees to know the bounds of their decision-making. I also underscore that people in leadership positions should not berate an employee who makes a bad decision, as it will deter them (and others) from being proactive in the future. I remind my students that they are in college to be future managers, and empowered employees can help their department achieve higher levels of performance, thereby enhancing their own chances of success.

Recognize not everyone wants empowerment

Then I tell them the bad news: Not all employees want to be empowered — even an employee who does outstanding work might be uncomfortable with that responsibility. Some prefer to do their job as instructed by management, rather than take on a decision-making role. If you give too much autonomy to a good employee who does not want to be empowered, you run the risk of taking them out of their comfort zone. You might even create a problem employee with decreased morale and productivity. Therefore, it’s critical for managers to identify who can be empowered and who cannot.

Identify employee work styles

After giving this lecture to a full-time cohort of MBA students, I received an email from one of my students. He and a partner had a software application business, and they had recently hired a programmer to write code for one of their projects. My student had given her broad instructions about what he wanted and envisioned. She missed the deadline, and my student told his partner he wanted to replace her. His partner pleaded with him not to fire the programmer, as she was well-regarded in her field, and she would be difficult to replace on short notice. Firing the programmer would also mean the launch of their software application would be delayed.

After the lecture, my student decided to give her another chance. However, this time he provided very detailed instructions on what he wanted her to do and how to do it. He gave her one week to complete the task. Well, she ended up submitting the work within three days, and she had done an outstanding job. He realized that, in trying to give her a lot of responsibility right away, he made her dysfunctional. She could better serve the company if he offered specific instructions and guidance.

My student’s experience illustrates the importance of identifying employee work styles. Taking the time to understand when people need additional oversight and guidance — and when they’re ready to be empowered – is an essential part of quality management.

Support both empowered and directed employees

As a manager, try delegating small tasks to your employees, then evaluate their performance. Those who rise to the challenge can be incrementally given more responsibility; those who do not — yet perform their jobs well — should be left alone to do their work. After all, empowered employees and good employees both demonstrate that you are an effective manager.

Elevate Your Team's Capabilities

Don't just manage tasks – empower your team with deep supply chain knowledge. Discover how ASCM Corporate Talent Solutions can help you cultivate the skills needed to tackle challenges and implement new technologies effectively.

Is the Future of Manufacturing Extraterrestrial?

Fri, 16 May 2025 00:00:00 -0500

From mining precious "spice" on Arrakis to the high-stakes extraction of unobtanium on Pandora to turning the red planet into a potato farm, science fiction has long captivated us with the prospect of spaceborne production. Now, as this kind of futuristic vision becomes reality, supply chain professionals may soon find themselves taking their own giant leap into the cosmos.

“The absence of gravity allows for unique manufacturing processes that cannot be replicated on Earth, thanks to the interesting physics of near-weightlessness,” Wired reports. In fact, the microgravity environment of Earth’s orbit could even enable the production of higher-quality products.

For example, seed crystals — an important element in semiconductor manufacturing and high-quality pharmaceuticals — are purer when produced in space, Wired continues. The company Astral Materials plans to grow these crystals “with a mini fridge-sized furnace that reaches temperatures of about 1,500 degrees Celsius.”

In addition, a McKinsey report states that scientists are experimenting with producing in-space organoids: Miniaturized and simplified versions of organs resemble living human tissues and can be used as 3D models to evaluate disease with much greater success than on Earth. Further, scientists have hypothesized that a space environment might enable the production of organoids from specific adult stem cells — something not possible today.

Helping to enable these developments are private space companies such as Blue Origin and SpaceX, which have partnered with NASA to increase the frequency of space travel. This, in turn, expands access and reduces costs, paving the way for in-space manufacturing. Experts say the industry will reach $100 billion by 2035. In fact, Welsh in-space manufacturing company Space Forge just raised £22.6 million in funding, led by the NATO Innovation Fund, reports Tech EU. The money will be used in launching satellite platforms, which are designed to manufacture and return “high-performance materials that are difficult or impossible to produce on Earth, enabling commercial scalability.”

Plus, in-space manufacturing might also be better for the Earth. “Materials made in space are expected to dramatically outperform their terrestrial counterparts — potentially cutting CO₂ emissions by up to 75% and reducing energy usage in applications such as cloud data centers, EV charging and quantum computing,” Tech Eu adds.

The sky’s the limit in supply chain

If you’re amazed and inspired by technological breakthroughs like these, then I’m thrilled to invite you to CHAINge North America. This transformative experience will redefine the future of supply chain management, with many educational sessions featuring fascinating innovations and a Tech Showcase where you can see the latest solutions in action through live demonstrations. On September 9-10 in Columbus, Ohio, be a part of a truly immersive experience centered on collaboration and impact. Register today — CHAINge North America is going to be out of this world!

5 Predictions for the Future of 3D Printing

Mon, 12 May 2025 10:00:00 -0500

3D printing is instrumental for prototyping, custom tooling, replacement parts, personalized medical devices, small and medium-sized production runs, and many other manufacturing applications. But what's to come in the 3D printing realm, and how will additive manufacturing change supply chains as the technology continues to evolve?

What is 3D printing, and how does it work?

Also known as additive manufacturing, 3D printing is the process of layering materials to make products and components using computer data. Imagine printing spare parts at your distribution center instead of waiting weeks for traditional manufacturing, or creating custom packaging solutions tailored to specific products, all without massive tooling costs. That's the power of 3D printing. It streamlines your supply chain by:

Reducing dependence on traditional manufacturing: Print parts locally, minimizing lead times and transportation costs.
Boosting inventory agility: Create custom items on-demand, eliminating the need for large, static inventories.
Enhancing innovation: Prototype and iterate designs quickly and cheaply, accelerating time-to-market.
Personalizing offerings: Adapt products to individual customer needs with bespoke printed components.
Improving sustainability: Minimize waste and optimize material usage through additive manufacturing.

How far 3D printing has come

In recent years, 3D printing has gotten bigger, faster and cheaper. Rising demand for specialized materials to fulfill the required properties of end parts has driven developments in the range and types of options available. The key for the new generation of printers, especially industrial-grade solutions, is the ability to handle a greater range of advanced materials. This has opened the door for businesses to benefit from additive manufacturing in areas where they previously could not.

Although machine costs remain somewhat high, increased printing speed has been pushing down the price. As more and more businesses adopt 3D printing, these advancements will continue to accelerate. And with the addition of processes such as dual extrusion, the versatility of 3D printing will keep growing and be adopted in a wider range of industries.

How 3D printing works

3D printing is part of an integrated supply chain approach. To maximize benefits, manufacturers are using a large range of printers and materials and, importantly, connections with other industry professionals. Furthermore, interoperability among systems has become important to maximize the technology’s potential. Automation in production and post-processing, as well as in integrated usability, were key trends and continue to be.

Additive manufacturing provides a whole new supply chain approach as part of a holistic and secure platform in which the individual steps are combined into one process, from concept to materials, digital inventory, production and delivery. As manufacturers strive toward Industry 5.0, services offering a fully automated, yet secure, platform are essential.

Partnerships have created mutual benefits and synergies that lead to a greater final product for customers. Standards are being developed, and printer and post-processing systems are increasingly able to work together. In addition, shared production data has led to improved printers and materials for all. As always, close collaborations are essential to achieving the best possible solution. An ecosystem where service providers, material producers and print farms are increasingly connected is an important next step.

Quality and cybersecurity assurance are also essential. 3D printing has continued to transform today’s industries, with companies adopting the technology for many of their needs, thereby giving rise to a more integrated production environment. Of course, businesses demand assurance that their 3D printed parts will meet necessary quality requirements. It’s important to carefully select production partners, check their capabilities and ensure repeatable fit-for-purpose parts. Moreover, data ownership plays a crucial role and intellectual property and design data have to stay in the right hands.

The benefits of 3D printing

Additive manufacturing printing boosts supply chain resilience. It’s already being used as a solution to a variety of supply chain disruptions, and its role in solving these problems will continue to advance. For instance, because 3D printing production can be situated closer to the consumer location, manufacturing organizations using this technology have built shorter, stronger and more resilient supply chains. Further, engineers and manufacturers can send a design file to the 3D printer nearest the next step in the supply chain, whether it’s the manufacturer receiving the component or the consumer receiving the final product. This also means there’s less need to store and incrementally move inventory. Instead, parts can be printed and shipped the shortest practical distance, thus reducing carbon dioxide emissions and boosting supply chain resilience.

Indeed, additive manufacturing drives sustainability forward in many ways. By specifically designing a part for 3D printing, engineers have drastically decreased the weight of the end part, therefore reducing the material needed for production. Moreover, when 3D printing is used as part of an on-demand and decentralized digital warehouse, it reduces the number of parts in inventory and the associated waste. Plus, by locating production closer to the next step in the supply chain, carbon dioxide emissions during transport have been reduced. And there has been significant growth in sustainable 3D printing materials such as recycled, reusable and biodegradable plastics.

Predictions for the future of 3D printing

When determining how to prepare your supply chain organization for the future of additive manufacturing, consider the following five predictions about 3D printing's near future:

Mass customization at scale: 3D printing will move beyond niche personalization to enable true mass customization across a wider range of consumer and industrial products, driven by advancements in printing speed and material handling.
Embedded intelligence and functionality: Expect a rise in 3D-printed objects with integrated sensors, electronics and even biological components, blurring the lines between manufacturing and advanced technology.
Decentralized and distributed manufacturing networks: 3D printing will fuel the growth of localized and interconnected micro-factories, further shortening supply chains and enabling greater responsiveness to regional demands.
Advanced materials science breakthroughs: There will be significant innovations in 3D printing materials, including stronger, lighter, more sustainable and multi-functional materials tailored for all kinds of applications.
AI-driven design and optimization: AI will play a crucial role in optimizing part design for 3D printing, predicting material performance and automating the entire additive manufacturing workflow.

The future of 3D printing remains bright, promising faster, more diverse and more integrated production methods. By embracing these trends and prioritizing quality, security and sustainability, this technology will continue to revolutionize manufacturing and empower businesses to create a more resilient and responsible future.

Take a deeper dive into this and other technology-related topics with the ASCM Supply Chain Technology Certificate.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was August 2022.

Rough Waters for Shipping Industry in the Face of Trump’s Tariffs

Fri, 09 May 2025 00:00:00 -0500

The extreme unpredictability of global supply is reaching levels not seen since the pandemic. But this time, it’s not safety restrictions and quarantines affecting our networks; it’s erratic and ever-vacillating tariffs. Still, the effects are unnervingly similar.

This week, the ports of Long Beach and Los Angeles — two of the busiest in the United States — took a big hit after the most recent tariff announcement. Both are reporting huge drops in traffic, with 34 and 36 canceled sailings respectively, per NBC Los Angeles. In total, there was a 44% drop in cargo this week.

The CEO at Long Beach told the news station that fewer products arriving from China unfortunately also means fewer employment opportunities and on-the-job hours for dockworkers. The article goes on to say that nearby businesses, such as lunch spots and gas stations, are also facing significant losses. As for the average consumer, they can expect to find emptier store shelves and feel the pinch at the cash register.

I spoke with KNX on Wednesday about the decreased inventory, noting that the first items people will miss will be electronics, fast fashion, home goods and toys. Although some organizations moved inventory forward in anticipation of the tariffs, once those supplies are depleted, we’re going to have stockout situations and much higher prices.

“I think back to the days of product scarcity that we experienced during the pandemic,” I explained in the interview. “I'm not saying it's going to be that dire; but consumers may see fewer sizes, colors and options. And more than likely, small and medium-sized companies will get hit hard because they don't have the flexibility or the resources to withstand these kinds of shocks to the system.”

Chart your course

Even if a new trade deal with China is reached, our global networks can't just flip a switch and get stocks back on shelves — it could take months. As supply chain professionals, we have a key opportunity to help ensure our networks are prepared. And as always, ASCM is here to support you in these critical efforts.

The webinar Navigating Supply Chain Challenges: Agility, Resilience and Strategic Flexibility will take place May 15. Supply chain experts Nikolaos Delioglou and Rene Farcher will provide valuable perspectives and methodologies derived from highly successful consulting projects. They will help your team and organization adapt swiftly, optimize decision-making and drive sustainable cost efficiencies. Register today

To keep learning, be sure to register for CHAINge Europe in Brussels, June 17-18, and CHAINge North America in Columbus, September 9-10. Both events feature expert talks by supply chain thought leaders, strategists and policymakers; hands-on workshops; and valuable networking with your colleagues from around the world. Join us for CHAINge and gain the critical insights, innovative strategies and global connections necessary to build resilient supply chains and expertly navigate the turbulent waters of international trade.

Logistics Career Path: Skills, Jobs, Education and More

Tue, 06 May 2025 00:00:00 -0500

There's never been a better time to explore a logistics career path. Of all the supply chain management careers available, job positions in logistics play a uniquely important role. These professionals handle supply planning, movement and storage of goods, analysis — and they’re in high demand. According to a Logistics and Supply Chain Labor Shortage survey, there is a labor shortage in the industry. Positions for logistics workers — such as planners and analysts — are the most difficult to fill, followed by logistics managers. So keep reading to learn more about your career route options.

What is supply chain logistics?

Supply chain logistics is the department of supply chains that keeps goods, resources, facilities and equipment moving. The function of logistics is to ensure products make it to their correct destination. A logistics professional manages the process of moving goods and materials from point A to point B. They are responsible for planning the best routes, transportation and storage; they handle packing and delivery schedules; and they are needed to solve problems such as delays or damages. Also they are often tasked with using technology to track the location of goods.

Is logistics in high demand?

According to the Occupational Outlook Handbook, employment for logistics professionals is expected to grow by 18%, which is much faster than many occupations. Each year, there are more than 20,000 job openings in the industry. Plus, due to the increasing demand of e-commerce, aspiring logisticians have more career options than ever.

Starting on a logistics career path

A career in logistics normally starts with bachelor's degree or a professional certification in the field, followed by an internship or full-time role. Formal education is often supplemented with experience and professional certifications, and certificates. Some of those certifications can help you get your foot in the door. Despite most logistics, supply chain and transportation positions requiring a degree, there are some jobs where less education is not a problem.

Logistics career education requirements

Following are some of the bachelor’s degrees that logistics professionals often obtain. This is by no means an exhaustive list, but provides a basic understanding of the potential majors to pursue:

Operations management
Logistics and supply chain management
Industrial engineering
Business analytics
Economics
Information systems management
Business administration
Logistics management

As with all careers, further education can lead to opportunity, especially if when pursuing more supervisory roles or highly technical positions in engineering or analytics. Common logistics masters degrees include:

Logistics and supply chain management
Supply chain and logistics technology
Applied business analytics
Global operations and information

Logistics career salary averages

The annual salary for logistics positions varies by job type and location. The range for logistics managers in the United States is $87,000-$135,500, with the average salary around $109,500. Logistics managers with one of ASCM's APICS certifications — such as the ASCM CLTD designation — earn an extra 19% annually on average. Professionals in Canada who hold a CLTD designation earn 17% more than their peers without the designation.

Logistics career skills

Professionals pursuing a career in logistics should have or be prepared to acquire a variety of skills:

Attention to detail
Communication
Problem-solving
Project management
Analytical skills
Customer service
Technological proficiency
Innovation
Flexibility and adaptability
Leadership and collaboration
Risk management

What are common logistics jobs?

Because logistics covers such a wide area within supply chain management, there are many potential jobs to consider. The responsibilities within these roles cover a multitude of areas, as shown below, but primarily focus on ensuring products are safely transferred from point A to point B, while taking the necessary measures to avoid regulatory issues and increase transportation cost effectiveness.

Order processing – A well-managed logistics ecosystem ensures orders are properly prepared, packaged,and delivered. The major functions of order processing include inventory picking, order placement, sorting, packing and shipping.
Warehouse management – A role in warehouse management requires effectively auditing and tracking materials and goods, along with handling special requirements, such as docking and cold storage facilities.
Inventory management – Maintaining sufficient inventory levels entails monitoring inventory records, predicting the demand for goods and ensuring safety, which all rely heavily on effectively managing a database.
Transportation – The act of transporting goods involves running an automated fleet management system for route optimization, cost effectiveness and mitigation of any transportation risk.
Packaging – Ensuring the proper logistics packaging protects your products from any kind of damage, deterioration or tampering.
Demand forecasting – Proper demand forecasting requires maintaining appropriate product levels while managing unpredictable market conditions. Advanced analytics and powerful databases are key in this role.
Customer response – A prompt response strategy leads to accuracy in order fulfillment and happy customers. Deploying and managing advanced software platforms can be a large part of this responsibility.
Material handling – Handing materials efficiently ensures products reach the customers in optimal condition. This often involves implementing robust material handling systems to streamline delivery times and improve overall customer service.
Fleet management – Fleet management includes monitoring, tracking and maintaining commercial vehicles to enhance driver safety and ensure prompt delivery.
Information control – This involves the fundamental supply chain process of managing data-driven logistics operations. Technology drives the core of this function and is key to creating holistic supply chain management.

Logistics career paths

A logistics career may start with job titles like warehouse worker, logistics administrator, inventory analyst, buyer or purchaser, supply planner, demand planner, or production planner. Professionals progress to specialist and manager roles, director positions and ultimately executive roles. For example, someone might start as a logistics manager for less-than-truckload, trucking or rail; move to a distribution manager role; grow to director of distribution; advance to director of transportation; and ultimately reach the role of vice president of transportation. Another example career path broadens into more general supply chain management jobs: It starts at logistics coordinator or master scheduler, then progresses to senior logistics manager or supply chain manager, director of supply chain, vice president of supply chain or chief supply chain officer.

Entry-level logistics job titles

With so many options in the logistics industry, it can be difficult to know which roles you should searching on job boards. These roles serve as the perfect entry point for your logistics career:

Customer support systems analyst
Data entry specialist
Data analyst
Distribution or warehousing worker
Documentation specialist
Governmental procedures expert
Inventory control specialist or inventory manager
Logistics analyst
Logistics coordinator
Logistics engineer
Logistics manager
Master planner
Purchasing manager
Quality control specialist
Shipping coordinator
Transportation analyst
Transportation manager
Warehouse manager

Senior-level logistics job titles

A career in logistics offers plenty of room to grow, too. After an entry-level and a managerial role, professionals can advance to higher-level positions:

Chief supply chain officer
Director of distribution
Director of logistics
Director of transportation
Vice president of operations
Vice president of transportation

Regardless of the specific logistics career path chosen, industry professionals will most likely find fulfilling, stable supply chain careers. A substantial 81% of people reported satisfaction levels of at least 7 out of 10, signaling a strong and lasting sense of fulfillment within the industry.

Logistics career resources

To learn more about your options in logistics and supply chain management career path, check out the following ASCM resources:

Look for a logistics job role: Supply Chain Job Board
Join the largest community of supply chain professionals: ASCM Membership
Learn more about career development: Certified in Logistics, Transportation and Distribution (CLTD) and the Warehousing Certificate

Editor’s note: Some of the information in this blog has been updated to reflect the latest data from ASCM's 2025 Supply Chain Salary and Career Report. The original publish date was April 2024.

Supply Chain Resilience Key to Outperforming the Stock Market

Fri, 02 May 2025 00:00:00 -0500

Navigating supply chains demands a constant balancing act — often pitting the needs of our communities or the environment against the lure of operational speed and efficiency. But it turns out that doing the right thing is also often the best thing. For instance, this concept is proven true time and again in cases of sustainability and fair labor. And now, a new report shows that prioritizing resilience also offers a clear return on investment.

According to the report by software provider Cleo, companies that invest in real-time visibility, automation, operational agility and diversified supply chains consistently outperform their peers on the stock market. The report analyzed more than 1,000 earnings calls between 2019 and 2025, evaluating them for key supply chain terminology and then reviewing stock prices of the firms, explains Supply Chain Management Review: “The findings draw a clear line between market winners and underperformers — and the supply chain is at the center of that divide.”

Unsurprisingly, supply chains experiencing stock market success employed many of the same strategies:

1. Capitalizing on post-pandemic demand: Companies that took advantage of the combination of increased demand and decreased restrictions saw the greatest gains post COVID. Plus, 26% of companies attributed this growth to improved workforce development.

2. Turning backlogs into future stability. Successful businesses saw backlogs of high-margin products as a sign that there would be long-term supply side stability, despite increased inflation. “Companies that adjusted pricing in real time managed to offset inflationary pressures and maintain healthy profit margins.”

3. Cutting costs while increasing productivity. Investments in lean manufacturing, strategic staffing and diversified sourcing produced high returns.

4. Prioritizing product and technology innovation. Businesses that adopted automation, AI-powered analytics and connected services strengthened both efficiency and customer satisfaction.

5. Balancing investments in people and automation. In the study, companies that upskilled workers to improve their agility and future readiness and focused on automating rote processes saw the most success. Additionally, aligning hiring with digital transformation goals was more fruitful than staying dependent on manual processes.

Conversely, supply chain organizations that experienced visibility issues, increased costs without considering value or did not modernize foundational technologies have not thrived, notes Supply Chain Management Review.

Here’s an interesting example: Tupperware, known for its plastic food-storage containers, filed for bankruptcy last year. CNN says this was largely due to eco-conscious consumers rejecting plastics. Meanwhile, Pyrex has a thriving vintage market and even TikTok devotees because of its longtime commitment to eco-friendly glass products, which are good for both the environment and the bottom line.

Empower your resilient team

Supply chain resilience is about more than simply reacting to disruptions; it's about proactively developing agility throughout your entire organization. To achieve this transformative power, it’s necessary to instill within your teams the vision and know-how to navigate uncertainty and turn obstacles into strategic advantages.

Partnering with ASCM to design a customized corporate training program empowers your supply chain to withstand challenges and become stronger and more competitive. Begin your journey to proactive resilience with our free supply chain maturity assessment. You’ll discover how to identify your team’s critical capability gaps and receive a tailored roadmap to future-proof your operations. Start building a more resilient future with ASCM today.

Don’t Get Knocked Out by Knock-On Effects

Mon, 28 Apr 2025 00:00:00 -0500

In a March 2022 blog, I wrote about how supply chain professionals do the impossible daily. Two years later, not much has changed! Supply chain heroes continue to step up in times of confusion and chaos.

When you stop to think about it, so much is outside of any one organization’s control, and it’s pretty miraculous that systems flow as smoothly as they do. Products arrive on your doorstep on the day they were promised, most of the time. One of the particularly challenging tasks is the identification, prioritization and eventual mitigation of risk. Immediate risks may be relatively easy to identify, predict and control. However, the future tends to be a bit hazier. The most difficult risks to predict are knock-on effects further down the supply chain — but they have very real consequences if an organization isn’t ready for them.

What is a knock-on effect?

A knock-on effect is an indirect impact on a given organization caused by a risk event that has direct influence on a related entity. In simple terms, it’s the domino effect. While some knock-on effects may ease within days, others can take weeks or months, depending on how many supply chain links are between the disruptive event and the affected organization.

The Suez Canal blockage's impact on supply chains

As an example, think back to the Suez Canal blockage from early 2021. The Ever Given container ship blocked the canal, causing major disruption in global trade. The incident delayed the movement of goods, leading to congestion in ports and increased shipping costs. Since the Suez Canal typically transports about 10% of the global seaborne oil trade — or about 3 million barrels per day.

While this amount seems small, the blockage’s impact on crude oil prices quickly became significant. The day after the Ever Given’s accident, crude oil prices jumped about 6% as oil analysts reported that 10 crude tankers with 13 million barrels of oil were affected.

Crude oil is refined into petroleum products. While these products are most commonly used as fuels and for heating, they also are used to make plastics. Ongoing shortages of crude oil would likely affect transportation costs in the near term, but could also influence the price and availability of plastics in the long term. If a plastics manufacturer has to pay more for the petroleum, or cannot obtain it at all, then the manufacturer is forced to raise its prices or stop fulfilling orders altogether.

More examples of knock-on effects

Other events that have endured large knock-on effects were the Covid-19 pandemic which resulted in unprecedented disruptions across global supply chains. The pandemic led to shortages of essential goods, delays in product and transportation bottlenecks. It also created labor shortages in both manufacturing and logistics.

Civil unrest within the transportation sector has stolen more of the spotlight than ever in history, including the port worker strikes in 2023 and 2024.

Brexit, UK’s exit from the European Union, introduced new customs regulations and border checks, causing delays and increased costs for businesses operating between the UK and EU.

The potential impact of numerous tariffs being mutually imposed between some of the world's largest trading partners is significant. The ongoing US-China trade war, characterized by the imposition of tariffs and trade barriers, is causing substantial disruptions. Companies are struggling to adapt to these changes as they attempt to navigate supply chain reconfigurations amid the uncertainty surrounding trade policies.

Why knock-on effects feel impossible to predict

If you sat down and carefully mapped out all of the links in your supply chain, you still probably couldn’t think of all of the potential risks. There are just so many factors and moving parts. Add in black swan events, such as COVID-19, and the task can feel insurmountable.

The importance of risk management and visibility in supply chain

Risk management needs to be more than a thought exercise. It comes down to visibility into the variety of operations up and down your supply chain. The problem is that most companies do not have adequate visibility. In a study by ASCM and The Economist Intelligence Unit, we found that more than half of the companies studied lack end-to-end visibility into their supply chains because they rely on a picture of supply and demand that is based only on internal data. This severely limits their ability to detect emerging threats or calculate how a disruption will unfold. If you can’t see through your supply chain, you can’t clearly see the risks coming.

When a company has limited visibility, it can only plan for the risks it can see. However, if, say, a disruption event happens at a second- or third-tier supplier, the organization can only react, rather than take control of the situation. The deeper down the supply chain the problem happens, the longer it will take to react. And the longer it takes to react, the more costly the risk mitigation, and the more effort will be required to replan, reschedule and redirect operations to normal.

Understanding the current level of supply chain stability can be illuminating. It can assist organizations in their preparations for a risk event. Current levels of stability can be found in the KPMG/ASCM Supply Chain Stability Index. We are currently operating supply chains in 2x the volume and variety of risks that we endured during the pre-pandemic periods.

Building supply chain resilience

The keys to mitigating knock-on effects are building your supply chain visibility to better predict risks and improving your supply chain resilience to shift processes as needed to keep operations on track. Here are five ways to grow your strengths in these areas:

1. Invest in automated visibility. Software solutions can help your organization monitor, predict and plan for risk events. However, the effectiveness will depend on the quality of data put into it. Spend some time gathering and organizing clean, relevant data to build a strong foundation for your software platform of choice.

2. Improve your supplier communications. Make it a habit to check in with your suppliers to see how operations are going, and share your own performance information in the interest of transparency. Be sure to show your partners gratitude for a job well done. Also encourage them to come to you as soon as a problem arises so you can help. Then, walk the talk. If a supplier flags a challenge, don’t get mad or place blame. Collaborate to mitigate the situation and find mutually beneficial solutions.

3. Engage in “coopetition.” Your competitors and other companies similar to yours will be the best at understanding the challenges you face. Look at your industry and even related industries to identify collaborative partners for coopetition — or cooperation with your competition. Pose your challenges to garner suggestions regarding how to handle a given situation. If you’re engaging in a common practice, such as vetting suppliers, share benchmark data to make the process easier and less time-consuming. If you need help identifying collaborative partners, reach out to an industry association to help you connect with other organizations facing challenges similar to yours.

4. Diversify your supply base. Source constraints are a major factor in supply chain planning. A variety of disruption events can make it difficult and more expensive to obtain the materials or products your organization needs. A smart strategy is to diversify your supply base. When possible, identify and nurture relationships with suppliers around the world. Then, when a disruption occurs, it’s less likely to affect all of your suppliers at once. Keep in mind that building supplier relationships takes time, and it can be difficult to quickly find a good supplier in a region where you do not currently have connections. Do your due diligence and build a strong base that can support you.

5. Optimize your manufacturing capacity. Similarly, when possible, spread out your manufacturing operations in different regions to minimize your operating risk. Most likely, if a risk event disrupts one manufacturing facility, others will still be online and able to carry out operations.

Furthermore, plan your manufacturing operations to scale up or scale down production at a given facility based on the performance of another facility to minimize downstream disruptions. Lastly, consider locating some of your manufacturers near your end-customers. This can help mitigate logistics and transportation risks and keep deliveries on track.

With an effective risk-management strategy bolstered by visibility and resilience, seemingly impossible risk mitigation becomes achievable. As hard as supply chain professionals try, they won’t always be able to predict every potential risk event. But we can and should have plans ready for when most issues occur — and the ability to take effective action.

Learn how to improve efficiencies and minimize risk by earning the ASCM Supply Chain Resilience Certificate. This course will help build fundamental knowledge in supply chain planning, with a focus on synchronized planning.

Shifting Palettes: Supply Chains Prepare for the Artificial Dye Ban

Fri, 25 Apr 2025 00:00:00 -0500

Whether it's the refreshing green of mint ice cream or the electric red of a sports drink, color influences our food choices, often subconsciously. For decades, artificial dyes have been the go-to for achieving these vibrant, enticing shades. But now, a potential policy change is bringing to the forefront both health implications and intricate supply chain and environmental considerations.

This week, the FDA announced its intention to phase out artificial food colorings, citing harmful effects on consumers. The agency said it would “revoke authorization” for two colors and “[work] with the industry to eliminate” six more. Four new natural alternatives will be approved in the coming weeks.

Robert F. Kennedy Jr., the secretary of the Department of Health and Human Services, has long criticized artificial dyes as “part of a larger food system that contributes to chronic disease and poor health,” according to The New York Times. The article goes on to say that he has reached “an understanding” with major food manufacturers to remove commonly used petroleum-based food colorings from their products by 2026.

Of course, switching from artificial to natural colors is far from simple — especially when more than 60% of the items on grocery shelves could be affected. The International Association of Color Manufacturers told Newsweek that there aren’t enough alternatives available to replace existing products and warned of “long-term supply chain challenges and the need to import costly substitutes.” Here are just a few of the hurdles:

Time and again, research proves that people prefer the taste of foods in certain colors; duller hues may seem less flavorful or be unappealing, thus influencing purchasing decisions.

Current additives affect taste and shelf stability, critical elements that will need to be recalibrated.

“Natural colorant production would need to scale up by approximately 500% to accommodate the U.S. market alone,” according to Unbiased Science.

Significant agricultural expansion will be needed to produce enough of the natural colorings, which comes from vegetables such as beetroot and turmeric.

More natural dye is needed to achieve a satisfying color than synthetic dye, so recipes may have to be reformulated, per The Times. “Your sugar or flour may be off,” explains James Herrmann, director of food colors at Sensient Technologies, a company that manufactures colors — both artificial and natural — for the food and beverage industry.

Produce often requires cold storage, as well as staff retraining, equipment recalibration and certain cleaning protocols.

Packaging may need to be replaced with light-blocking materials, as light can cause natural colors to fade, change or even separate.

And of course, there’s a natural seasonality to growing produce that won’t always match up with demand.

Despite the many supply chain complications, the environmental case for removing food dyes has merit — something we should all be considering as another Earth Day passes without governments meaningfully addressing the climate crisis. For instance, an average of 10-15% of food dyes are discharged as liquid waste into rivers or oceans during production. This contaminates fresh drinking water and makes soil toxic with chemical waste, killing animals and crops. Natural alternatives to synthetic dyes can have significant environmental benefits, underscoring the need for a more thoughtful approach.

A commitment to sustainability

Even without government regulations, supply chain professionals know the importance of prioritizing the health and well-being of our planet during manufacturing, shipping and beyond. That’s why ASCM created our Enterprise Standards for Sustainability, the world’s first comprehensive evaluation for supply chain. This unique designation incorporates SCOR content and the bodies of knowledge from all ASCM certifications.

We also have our Sustainability Maturity Assessment, a free tool to help you evaluate your supply chain’s performance across economic, environmental and ethical dimensions. Find an individual course near you using our course finder, or set up an in-house class for the whole team.

Finally, take all of this a step further by boosting your sustainable sourcing expertise with ASCM’s Supply Chain Procurement Certificate, which teaches how to make the most of your data and key metrics to expertly manage suppliers and their performance. ASCM has a full spectrum of supply chain education — get started now!

10 Tariff Lessons Supply Chains Can Learn from Brexit

Tue, 22 Apr 2025 00:00:00 -0500

There are many interesting and important parallels between the current global tariff landscape and the United Kingdom's experience with Brexit. The following 10 key points delve into the economic and political drivers behind both events and, more importantly, the takeaways for supply chain professionals.

Perils of uncertainty: Prolonged ambiguity regarding trade policies, as seen with Brexit's drawn-out implementation, paralyzes business decisions and hinders long-term supply chain planning. Tariffs create similar uncertainty, which discourages investment and strategic alignment.
Fast, strong impacts: While Brexit unfolded over years, the effects of tariffs are felt almost instantly through increased costs and altered trade flows. Supply chain professionals must be prepared for rapid adjustments and understand that even seemingly temporary measures can have lasting consequences.
Interdependent trade relationships: Brexit highlighted that even significant economies are part of complex global trade networks. Tariffs, by disrupting established relationships, can lead to unforeseen retaliatory measures and negatively affect both import and export activities, often harming domestic industries.
Insufficient government preparedness: Both Brexit and the implementation of tariffs can suffer from a lack of clear strategy, communication and thorough impact analysis. Supply chain professionals should anticipate policy shifts and advocate for transparent and well-considered trade policies.
Labor markets affected: Brexit caused direct labor shortages in the United Kingdom. Likewise, tariffs can indirectly alter labor needs by shifting production locations and cost structures, potentially making domestic production less competitive in certain sectors.
Reshoring more than just factories: Bringing manufacturing back home requires substantial long-term investment in infrastructure, skilled labor and supporting ecosystems. Tariffs alone won't magically create these conditions, and supply chain professionals need to consider the feasibility and timeline of such shifts.
Shipping and logistics issues: Brexit's border friction caused significant shipping delays and cost increases due to new checks and paperwork. Learning from Brexit's experience, supply chain professionals should expect increased port congestion, complex customs and transit delays, which will have an impact on both lead times and transportation costs.
Small business burden: The increased paperwork, customs complexities and logistical hurdles resulting from Brexit disproportionately affected smaller businesses. Tariffs are creating significant similar challenges, plus leading to less available capacity to absorb costs or navigate complex trade regulations.
Unintended consequences: Both Brexit and tariffs have generated unforeseen negative outcomes, such as reduced trade, increased bureaucracy and disruptions to specific industries. As always, supply chain professionals must be agile and prepared to adapt to ripple effects.
Intent-outcome mismatch: The initial goals of Brexit haven't necessarily materialized, leading to less trade and ongoing economic challenges. Similarly, the intended outcomes of tariffs — protecting domestic industries, reducing trade imbalances —may not be fully realized and could lead to negative outcomes for supply chains and consumers. Supply chain professionals play a crucial role in bridging the gap between policy intent and real-world outcomes. By providing data-driven insights, fostering collaboration and building agile networks, they can help their organizations navigate the complexities of the tariff landscape.

For more detailed information and updates on tariffs, access ASCM’s Tariff Tracker.

The 10 Essential KPIs for Supply Chain

Mon, 21 Apr 2025 00:00:00 -0500

Supply chain professionals know key performance indicators (KPIs) are vital to reaching strategic and tactical objectives. Issues are identified, improvements are made and goals are more likely to be met. Use the following metrics to build a resilient, sustainable and digitally mature supply chain in 2026 and beyond.

1. On-time supply is the difference between orders delivered on time and delivered late, divided by the number of total orders. Tracking this KPI helps you understand whether or not a supplier is reliable.

2. If you aren’t tracking your suppliers’ ability to deliver materials on time, on-time delivery — calculated by shipments delivered on time versus late — may indicate a need to do so. It also can identify possible issues in customer logistics. For many, this is the most important KPI because it speaks to customer satisfaction and can directly affect the bottom line.

3. Downtime in proportion to operating time is the ratio between the time production and supply chain lines are stopped and the time they operate. It is a direct indicator of asset availability for production: The lower the number, the more efficiently your manufacturing equipment is being used. A ratio of 0.5 means production lines were stopped half of the time.

4. Productivity in revenue per employee shows areas with the least and greatest return on investment and can be examined on several levels: company, department and even production line. Find this number by dividing all generated revenue by the number of employees.

5. Incoming material quality is the amount of time or money spent repairing a product because of the quality of materials used. This can be examined by supplier, by product category or as a percentage of faulty materials versus good materials.

6. Extra inventory ties up valuable financial and real estate resources, as you want to use your space for production, not for storing extra materials and components. Inventory turnover control is calculated by the number of days materials haven’t moved from warehouse storage to production. The higher the turnover rate, the more efficiently your supply chain is built. The number varies by industry and manufacturer-specific needs, but, as the general rule, turnover should be 30 days or less.

7. Our global supply chains continue to face unprecedented volatility, from geopolitical tensions to climate change. Time to recover (TTR) is an essential KPI because it directly measures a company's agility and ability to minimize the impact of disruption. A shorter TTR translates to reduced downtime, faster restoration of customer service and minimized financial losses, providing a significant competitive advantage in an unpredictable environment.

8. While the original on-time delivery KPI hints at customer experience, customer order cycle time provides more direct and critical insight. This KPI measures the average duration from the moment a customer places an order to the moment they receive it. Encompassing order processing, fulfillment and final delivery, a shorter cycle time is increasingly a key competitive advantage in today's fast-paced, e-commerce-driven market.

9. End-to-end visibility provides the foundational awareness needed for proactive risk management and informed decision-making. Knowing where goods are, their condition and potential bottlenecks in real-time enables organizations to anticipate problems, optimize flow and respond swiftly to deviations, ultimately leading to improved efficiency, reduced costs, and enhanced customer satisfaction.

10. A clear indicator of future competitiveness, the level of digital supply chain maturity highlights the value of technology adoption and integration. A single metric may be insufficient, so begin by assessing the percentage of processes automated, the Integration of digital tools, and the data utilization rate. These KPIs provide necessary insights into a supply chain's digital transformation journey.

Tracking performance with KPIs can be the difference between success and failure. Keep in mind that supply chain metrics by themselves can’t solve ongoing issues; they are roadmaps and compasses, showing whether an operation is moving in the right direction. Moreover, identifying a problem and its cause is just the first step; supply chain excellence requires a continuous investment of expert management and workforce training and education.

Editor's note: This article has been updated to reflect the current global supply chain landscape. It was originally published July 1, 2020.

SCOR-DS combines business process engineering, best practices, benchmarking, skill development and metrics into a cohesive system. Start your journey to supply chain excellence today.

Soaring Egg Prices Crack Easter Traditions

Fri, 18 Apr 2025 00:00:00 -0500

One of the main reasons holidays are so special is the chance to celebrate shared traditions: For birthdays, it’s cake and candles; on Halloween, we have are candy and costumes; and New Year’s Eve means fireworks and Champagne. This weekend, many people will celebrate Easter, which typically involves dyeing and hiding Easter eggs for children to find. But with egg prices soaring, these hunts might be noticeably absent from some celebrations.

“Behind the spike is a complex mix of factors: inflation, lingering supply chain issues and a devastating bout of bird flu that wiped out nearly 54 million egg-laying hens,” reports MSN.

Interestingly, some consumers are getting creative by dyeing other egg-shaped objects, including marshmallows and potatoes — and companies are ready to meet the demand. Marshmallow brand Jet-Puffed released a brand-new kit for the occasion, per CNN. For just $1.99, it has six dye colors with miniature tongs for dipping the extra-large marshmallows, which are about the same size as jumbo eggs. Compare that to the average for a dozen Grade A large eggs: a record $6.23 and a 60% increase over last year’s prices, according to the Consumer Price Index.

Another trend, initially a meme in 2023, is replacing Easter eggs with potatoes. Potatoes have some interesting advantages, including not needing to be boiled or otherwise prepared before dyeing. Plus, as with eggs, they are biodegradable and can be consumed if food-safe colors are used when decorating. The practice is being quickly embraced and actively promoted by potato advocacy groups, which are positioning potatoes as a versatile canvas and a budget-friendly way to maintain a decorative element in Easter celebrations, albeit in a less traditional medium.

Egg-cellence in agility and responsiveness

Despite the less-than-ideal circumstances, it’s heartening to see consumers pivoting away from eggs to less expensive alternatives, keeping traditions alive and budgets intact. As supply chain professionals, we know that agility and responsiveness are crucial — particularly in times of uncertainty. We experienced it just a few years ago during the pandemic, when manufacturers switched products on a dime to meet the needs of the public. And of course, as the implications of tariffs still remain unclear, supply chains need to be adaptable to respond quickly to changes in demand, disruptions and unforeseen events. Proactive planning is one way to stay in control.

With ASCM’s Supply Chain Planning Certificate, you’ll learn the fundamentals of supply chain planning while focusing on synchronization and meeting your organization’s key goals. This certification will help you interpret and manage the master production schedule and the material requirements plan, determine order and reorder points, identify technologies to support synchronous planning, and much more. Get started today!

Overcome Tariff Fatigue by Focusing on Building Better Supplier Relationships

Fri, 11 Apr 2025 00:00:00 -0500

Like most people around the world, we’ve been closely following the news on President Trump’s tariffs this week. His “Liberation Day” caused a global market meltdown as businesses and traders around the world reacted to the announcement. But just as quickly, Trump backtracked on what he said, creating widespread confusion.

Hours after goods from nearly 75 trading partners became subject to stiffer, so-called reciprocal tariffs imposed by the United States, Trump implemented a 90-day pause, dropping the taxes on imports from most U.S. trade partners to 10%, CNBC reports. Conversely, tariffs for Canada and Mexico are “still subject to 25% tariffs on goods that don’t comply with the U.S.-Mexico-Canada Agreement trade deal, as well as the 25% tariffs on steel and aluminum and foreign autos,” reports the Wall Street Journal, though other goods are exempt. Meanwhile, tariffs for China have now shot up to 145%; China retaliated by increasing tariffs on American goods to 125%, per CNBC. For its part, the EU is pausing countermeasures put in place after the initial tariff announcement, notes Reuters.

Alas, the unpredictability of the announcements remains. Whether they’re levied at 10% or 90%, the “newly imposed tariffs are expected to have far-reaching effects across various industries,” the International Business Times explains. “These added expenses could lead to higher consumer prices, delayed product launches, and increased pressure on already-constrained semiconductor and electronics supply chains.

But business leaders aren’t the only ones struggling to keep track of which tariff applies to which product; suppliers are worried about the pending repercussions of the new charges. Now more than ever, it’s vital for supply chain professionals to nurture relationships with suppliers — to promote trust, enhance collaboration and demonstrate and invest in the partnership.

There are myriad key tactics to try, writes ASCM Editor-in-Chief Elizabeth Rennie:

Identify reliable suppliers. By analyzing historical performance data, supply chain professionals can identify suppliers with a proven track record of delivering high-quality products on time.
Centralize supplier databases to help you easily compare suppliers, track performance data and manage communication.
Increase communication to avoid misunderstanding and foster a sense of partnership. Discuss challenges openly, share forecasts and provide feedback to keep suppliers informed.

But building successful supplier relationships isn’t just about finding the best supplier; you need to be a worthwhile customer and partner. For instance, look for opportunities to collaborate on “new product development discussions or joint-planning initiatives,” Rennie advises, and of course make payments promptly. Finally, consider formally recognizing good work to demonstrate your commitment and reinforce positive behavior.

Continuous learning for an ever-evolving landscape

Fostering successful — and lucrative — relationships with suppliers is a long-term process. Tariffs are the latest disruption to hit the industry, but we’ve been dealing with uncertainty for a long time. Something that doesn’t change is the necessity of education in an evolving world. ASCM’s Supplier Relationship Management Certificate is designed to support supply chain professionals identify, evaluate and deepen supplier and vendor relationships; evaluate and monitor the benefits and risks associated with suppliers; and enhance organizational efficiency and drive value across your supply chain. Supplier-customer collaboration is a crucial part of keeping our supply chains resilient so we can handle future upheavals with our partners by our side. Learn more today.

Stay informed and prepared with ASCM's Tariff Tracker, your essential source for navigating complex tariff changes. We deliver expert analysis alongside relevant news, empowering you and your team to understand potential disruptions and develop effective mitigation plans.

With Tariff Costs Sky-High, the Supply Chain Workforce Is Still Priceless

Fri, 04 Apr 2025 00:00:00 -0500

If there’s one thing supply chain professionals appreciate, it’s predictability. Obviously, we haven’t experienced much of that in the past few years; in fact, uncertainty has only gotten more acute.

This week, Reuters reports: “President Donald Trump's move to impose sweeping tariffs on U.S. imports on allies and rivals alike sparked threats of retaliation, intensifying a global trade war that threatens to stoke inflation and raising fears of recession. The penalties announced on Wednesday unleashed turbulence across world markets and drew condemnation from other leaders facing the end of an era of trade liberalization that has shaped the global order for decades.”

Indeed, the Trump administration’s frequent and often contradictory tariff announcements are causing supply chain managers around the world to wonder what might possibly happen next. And unfortunately, hiring in volatile times sometimes feels like a gamble: “The tariff chaos has caused a deer-in-headlights moment for many firms,” reports CNN. “Executives don’t know how high tariffs will go, what products will be affected or how long they’ll stay in place. Faced with deep uncertainty, some businesses are pulling back.”

The article cites a new survey of 2,600 CFOs, which found that trade and tariffs top their list of concerns. Economic optimism fell, too. And the data revealed that one-quarter of business leaders believe the changes to trade policy will negatively affect their hiring plans in 2025. Forbes agrees: “Companies historically hesitate to expand workforces or invest in production capacity when future trade conditions remain unpredictable. ... With North American supply chains being so highly integrated, we stand to experience significant workforce adjustments as companies reassess their operational strategies.”

One-stop shop for supply chain education

No matter the trade landscape, there’s one thing we can always depend on: the value of people. So now, at a time when many supply chain organizations aren't hiring, upskilling and reskilling existing team members becomes paramount. Plus, investing in workforce development is rewarding for employees, as it shows a clear interest in their futures, which leads to greater engagement and loyalty.

ASCM offers many avenues for upskilling or reskilling your workforce:

Our corporate solutions are tailored to fit any organization, with industry-leading standards and benchmarks to identify areas for improvement, implement measurable tactics and optimize operations.
Talent development is available to equip your people with the knowledge and processes to streamline supply chain operations; implement consistent best practices; and deliver results with flexible, performance-driven training and seminars.
Our APICS certifications offer comprehensive learning options, including self-study, instructor-led and group programs.
We have a plethora of certificates to keep your teams up-to-date on the latest tools, skills and technology for the most essential supply chain activities.

Elevate your team’s knowledge base, accelerate transformation and prove your commitment to growing the careers of each supply chain professional in your workforce. Contact us to get started today.

Stay informed and prepared with ASCM's Tariff Tracker, your essential source for navigating complex tariff changes. We deliver expert analysis alongside relevant news, empowering you and your team to understand potential disruptions and develop effective mitigation plans.

Relentless Tariffs and a Supply Chain Crossroads

Fri, 28 Mar 2025 00:00:00 -0500

The global trade landscape is an unpredictable and often erratic terrain. Current events are forcing supply chain professionals to navigate a maze of tariffs and tensions while contending with trade barriers that are reshaping established commerce and demanding rapid adaptation. This climate of instability directly affects the intricate networks that underpin modern commerce and, in many ways, shakes the very foundation of supply chain.

As The Wall Street Journal reports, “President Trump’s trade war is forcing America’s closest allies to choose between fighting back or folding. The trouble is, nobody has figured out which tactic works best.”

As the surge in tariffs leads to this ripple effect, established trade flows are in question and businesses are reassessing their sourcing and distribution strategies. From steel and aluminum to automobiles and electronics, the reach is extensive and growing. Here’s a snapshot:

This week, the U.S. imposed 25% tariffs on global automotive imports.

Dozens of Chinese companies have been added to a U.S. trade blacklist over national security concerns, escalating tensions between the two nations.

Tariffs on steel and aluminum imports are having widespread effects on manufacturing.

Further complexity is being caused by tariffs on goods from Canada and Mexico, with the United States-Mexico-Canada Agreement playing a role in exemptions.

Tariffs on agricultural products are challenging food supply chains and leading to higher costs for farmers, less market access and price increases for consumers.

Meanwhile, tariffs are looming for copper imports, semiconductors and pharmaceuticals, which would further increase costs for manufacturers reliant on these materials, potentially leading to higher prices for consumers and problems in critical tech and health care supply chains. Plus, as the Trump administration moves forward with reciprocal tariffs, the complexity of the situation only increases.

Quoted in today’s Wall Street Journal Logistics Report is a data point from an ASCM survey of 400 supply chain professionals, which revealed that 65% of organizations plan to pass on increased costs to their customers, a move that could lead to dissatisfaction and reduced demand. This hit to consumers is extremely concerning, with 41% planning moderate price hikes, 20% predicting high increases and 3% foreseeing extreme markups.

Beyond passing along costs to customers, the data notes a range of potential tactics, including shifting production to non-tariffed countries (43%), trying to absorb costs internally or renegotiate supplier contracts (40%), and stockpiling inventory in anticipation of further price hikes (34%).

Stay on track with ASCM

As the situation continues to evolve — especially given the administration's frequent policy U-turns — ASCM is committed to empowering you and your team with the latest information. Our brand-new Tariff Tracker is your dedicated resource for understanding key developments and their likely impacts. This valuable resource will feature ASCM's expert analysis alongside a curated news section to help you prepare for disruption and develop effective mitigation strategies. Don't let uncertainty derail your supply chain; head to ASCM's new Tariff Tracker now.

10 Actionable Steps to Build Manufacturing Resilience

Mon, 24 Mar 2025 00:00:00 -0500

Manufacturing is a significant driver of economic growth, employment, innovation and technological advancement. It is a foundational process that touches industries from electronics and automotive to consumer goods and pharmaceuticals. However, it's important to understand that manufacturing is also a distinct vertical — especially within the context of supply chain management.

Manufacturing in the supply chain

Manufacturing as a vertical emphasizes the production aspect of the supply chain. It's about how raw materials are transformed into finished goods. This focus includes production planning and scheduling, inventory management of raw materials, quality control, equipment maintenance, process improvement, and much more. These aspects are often highly specialized and require specific knowledge and skills.

The processes involved with manufacturing can be incredibly complex, involving specialized machinery, intricate workflows and strict quality standards. Industries such as aerospace and defense, automotive and pharmaceuticals have highly specialized manufacturing requirements, demanding deep expertise in specific technologies and regulations.

Manufacturing challenges

As a vertical, manufacturing also faces unique challenges, including equipment downtime, raw material shortages and price volatility, production bottlenecks, capacity constraints, quality defects, and labor shortages and skills gaps. These challenges require risk mitigation techniques, operational best practices and specific resilience strategies. Indeed, building resilience is a strategic imperative for survival and growth. With this in mind, following are 10 essential strategies to fortify your manufacturing operations against today's turbulent environment.

Build supply chain resilience in manufacturing

1. Embrace digital transformation: Use technologies such as AI, the internet of things (IOT) and digital twins to achieve real-time visibility, predictive maintenance and agile production adjustments. Implement a manufacturing execution system to streamline processes promote communication. And be sure to invest in training your workforce to become knowledge workers who can effectively use these tools.

Actionable step: Conduct an IT audit to identify vulnerabilities and create a roadmap for integrating digital technologies. Then, start with a pilot program to implement IOT tracking on a critical production line.

2. Diversify and strategize sourcing: Avoid single-source dependencies. Adopt a strategic sourcing approach that balances cost-effectiveness with risk mitigation. Explore regionalization and nearshoring to reduce lead times and improve responsiveness. Build strong relationships with a diversified supplier network, ensuring redundancy and contingency plans are in place.

Actionable step: Conduct a supplier risk assessment to identify potential vulnerabilities. Develop a plan to diversify sourcing for critical components, considering both global and local options.

3. Cultivate your most valuable asset: Prioritize continuous training and development to equip your workforce with the skills needed to adapt to change. Foster a culture of collaboration and innovation, empowering employees to proactively address challenges. Establish clear employee retention plans to minimize talent loss and help ensure stability.

Actionable step: Develop a training program focused on resilience, which encompasses risk management, crisis response and digital literacy. Use cross-training to create a more flexible workforce.

4. Strengthen supplier relationships: Build strong, collaborative relationships with your suppliers. Share information, conduct joint performance reviews and work together to address challenges. Implement supplier performance management programs to ensure quality and delivery. Consider setting up a supplier portal for real-time communication and data sharing.

Actionable step: Design a regular communication cadence with key suppliers and conduct joint performance reviews. Work with them to understand your disruption prevention plans.

5. Prioritize visibility and transparency for data-driven decision-making: Implement a centralized control tower to provide a single source of truth for all supply chain data. Leverage data analytics to identify trends, patterns and potential disruptions. Embrace blockchain to enhance traceability and security.

Actionable step: Implement a supply chain visibility platform that integrates data from suppliers, logistics providers and internal systems.

6. Build redundancies to prepare for the unexpected: Develop comprehensive business continuity plans for various disruption scenarios. Designate backup suppliers, alternative transportation routes and flexible production capacity.

Actionable step: Write a business continuity plan for at least one major disruption scenario. Simulate potential disruptions to test your resilience. Then, repeat the process for additional potential disruptions.

7. Focus on quality and sustainability: Implement rigorous quality control throughout the manufacturing process. Adopt sustainable sourcing practices, reduce carbon emissions and minimize waste. Ethical sourcing and fair labor practices strengthen relationships with stakeholders.

Actionable step: Implement a quality management system (QMS) that is integrated with your product life cycle management (PLM). Map your supply chain to identify potential impact areas for sustainability initiatives.

8. Embrace agility and responsiveness: Foster a culture of agility and responsiveness by empowering your workforce to quickly adapt to changing conditions. Embrace a 360-degree mindset, continuously monitoring market trends and leveraging data to anticipate threats and opportunities.

Actionable step: Implement agile methodologies in your production planning and scheduling. Empower your workforce to make quick decisions in response to disruptions.

9. Invest in software as a resilience driver: Modern cloud-based QMS and PLM solutions can enhance collaboration, automate processes and provide real-time visibility. They break down data silos and enable more accurate forecasting and proactive risk management.

Actionable step: Assess your current software solutions and identify areas for improvement. Investigate implementing a cloud-based platform that integrates QMS, PLM and supplier collaboration tools.

10. Learn from history; anticipate the future: Conduct regular post-mortem analyses of past disruptions to identify lessons learned. Leverage predictive analytics and scenario planning to anticipate new manufacturing challenges.

Actionable step: Provide regular training for employees in conducting post-mortem analyses and risk management. Stay informed about industry trends and emerging threats.

Supply chain resilience is at hand

Disruptions are no longer temporary anomalies, so manufacturers cannot afford to be complacent during periods of relative stability. Constant threats translate to raw material cost volatility, customer demand for rapid delivery and relentless pressure to reduce costs while boosting speed.

Investing in manufacturing resilience yields significant returns, including improved production output, reduced costs, increased customer satisfaction and a significant competitive advantage. By proactively building resilience into your operations, you can navigate the challenges of today's manufacturing landscape and position your company for long-term success.

Mitigate risks and build resilience in your supply chain with the ASCM Resilience Certificate.

Tech: A Key Ingredient in the Food and Beverage Supply Chain

Fri, 21 Mar 2025 00:00:00 -0500

Food and beverage innovation comes in many forms — from edible microchips in a wheel of cheese to blockchain-based traceability on a crate of wine to AI-controlled temperature regulation. And as these technologies improve, so do the companies — and employees — taking advantage of the latest tech solutions.

This week in the news, Kraft Heinz is using AI to improve quality, safety and visibility in its supply chain: “The ability to make data-driven decisions in real time has shifted the company’s supply chain approach from reactive to proactive,” reports Supply Chain Dive. This includes using a machine-learning model to reformulate its products’ nutritional profiles. Kraft Heinz is even using AI to quality check cucumber truckloads to ensure the veggies are suitable for the Claussen pickle production line. So far, this has made pickle production 12% more efficient.

Notably, the company hasn’t cut out the human element in the process; rather, its new generative AI tool PlantChat is designed to gather insights from employees while they make strategic decisions. A company spokesperson told Supply Chain Dive, “We want to automate processes where it makes sense while ensuring humans are in the loop and their efforts are focused where needed most.”

Other trends in AI study the customer more directly. CNBC reports that Talabat, an online food ordering service, is leveraging AI to predict and learn from user behavior on its app in order to “persuade more customers to order” rather than abandon their carts. “With AI, you can go very deep to the single individual and know exactly what that person is more likely to want or not,” Talabat’s CEO explains. This enables the company to make better recommendations and offer incentives, which encourages shoppers to press the order button. Based on these and other innovations, global market research firm The Business Research Company predicts that the AI-driven food technology market will reach $27.73 billion by 2029.

Meanwhile, Forbes reports on startup Stocky AI, which is “using AI to revolutionize inventory management and minimize food waste, demonstrating the technology’s far-reaching impact on the food ecosystem.” The company describes its approach as “integrated ordering and invoicing with account management, accurate inventory tracking with traceability, and digital harvest records for producers.”

Forbes also explains how food and beverage company Danone is “partnering with Microsoft to enhance logistics and streamline production.” The two businesses are even collaborating to launch Danone Microsoft AI Academy, which will train workers to use AI. The collaboration is described as “dedicated to upskilling all Danone employees to ensure that [they] are equipped with the AI and digital tools they need to thrive in the new AI-driven economy.”

Secret sauce

No matter how AI advances in the near and distant future, it’s people who will make the technology a success. To make sure you have the necessary skills, check out ASCM’s Supply Chain Technology Certificate. Beyond learning to maximize AI, you’ll have access to more than 20 hours of education about advanced analytics, cybersecurity, additive manufacturing and lots more. Get started today and discover how tech can add the perfect seasoning to your supply chain strategy.

Business Resilience and the Supply Chain Professional

Tue, 18 Mar 2025 00:00:00 -0500

Editor's note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was November 8, 2023.

A key priority for every supply chain leader is resilience. In fact, resilience is cited in ASCM’s list of Top 10 Supply Chain Trends in 2025 “Resilient supply chain design will be critical to mitigating adverse events faster than the competition, providing excellent customer service, and generating value and market share.”

Supply chain managers who follow suit are going to be ahead of the curve now and in the future, when more unknown — and expected — risks are sure to follow. Resilience leads to the realization of operational and financial benefits, essential responsiveness, and make-or-break competitive advantage. Read on to find out more about what supply chain resilience is, the four pillars of building supply chain resilience, and the strategies and tools that can make supply chain resilience a reality.

What is supply chain resilience?

According to the ASCM Supply Chain Dictionary, supply chain resilience is the ability of a supply chain to anticipate, create plans to avoid or mitigate, and to recover from disruptions to supply chain functionality. In short, resilience is what keeps things running during a disruption — and what helps companies get back on track afterward. In fact, a study by Boston Consulting Group found that companies that focused on supply chain resilience doubled their competitive advantage in crisis quarters over their peers who did not.

In taking actions to be more resilient — such as streamlining operations and focusing on efficiency — companies also unlock ancillary benefits. These include boosting production output, increasing perfect order rate, cutting expenses and transportation costs, and increasing customer satisfaction.

The 4 A's of supply chain resilience

There are four principles of supply chain resilience:

1. Advocacy: Just like any business initiative, a plan for supply chain resilience needs executive buy-in, support and advocacy. From there, take a team approach and involve various departments in the resilience effort.

2. Awareness: The second step is knowing which risks could affect your networks and understanding the potential severity of each. This requires visibility into the supply chain to identify and respond to disruptions. It also includes having visibility into suppliers, suppliers' suppliers, logistics partners and inventory levels.

3. Agility: Agility is the ability to adapt to change. When it comes to supply chain resilience, this may involve sourcing materials from different suppliers, changing production schedules or using alternative transportation modes.

4. Action: There are many ways to become more resilient. In supply chain, some common initiatives include the following:

Procurement: Companies need robust procurement strategies that include suppliers in different parts of the world that can fill in when other suppliers are experiencing disruptions and offer logistics benefits that skirt or overcome other disruptions.
Operations are what drive your business, so they must be protected with resilience plans. Strategies can include having backup equipment, having multiple factories and warehouses, keeping buffer stock, and more. Another approach is striving for leaner operations that reduce complexity and waste.
Demand is constantly changing. Companies should invest in sensing technology and advanced analytics to analyze market opportunities and prepare to meet demand or scale back to avoid waste.

Achieving supply chain resilience

Building on these four principles, supply chain organizations need to implement resilience-building strategies and tools:

Supply Chain Strategies

Supply chain mapping helps track what partner does what, what products and operations are where, and who can be called upon during a disruption to another supply chain link.
Increasing end-to-end supply chain visibility helps organizations to know what all parts of their supply chain are doing and how well they are performing. This can help to sense and mitigate disruptions.
Leveraging big data for up-to-date insights gives supply chain managers up-to-the-minute information about whatever is being tracked, from inventory to customer demand to machine performance to shipment locations.

Supply Chain Tools

Digital twins build on supply chain mapping to stress test the supply chain. This can help predict how your supply chain will react under pressure. It also can help you pinpoint weak spots.
Supply chain control towers are centralized hubs that provide an integrated, complete view of the data across the end-to-end supply chain. They are commonly used for tracking inventory, but they can be used for other operations and for sharing data among supply chain partners to support transparency.
Advanced analytics tools can parse out the big data collected by internet-of-things devices and analyze it to identify opportunities or needed interventions. The future will be about sensing risks and disruptions faster and sooner so that companies can have the most time possible to mitigate the disruption.

The foundation of supply chain resilience is knowing what is happening in your supply chain so that you can plan for, react to and recover from supply chain disruptions. Once risks are known, the next steps for building supply chain resilience will be unique to each industry and even each organization based on their specific operations and risks. Those steps should certainly involve establishing contingency plans for critical operations, building inventory buffers, and taking a team approach to addressing risk and resilience.

Push past the barriers with tech and training

Although supply chain resilience is important, it’s certainly not easy to achieve. For starters, the technology tools are expensive. Plus, much of the necessary foundational work, like finding the right data pools and data cleaning, is time consuming and sometimes downright tedious. Finding workers with the digital skills needed to effectively use this technology and support supply chain resilience is a top challenge for companies. In 2022, only 10% of surveyed companies said they had sufficient in-house talent to support their digital strategies. A third challenge is achieving supply chain visibility. In 2022, only 17% of surveyed companies said they had visibility into their third-tier suppliers or beyond.

The clear solutions to these problems are tech and training. There’s been a lot of buzz about transforming to a digital supply chain in recent years, and for good reason: Supply chains that were fully or partially digital when the pandemic hit were more likely to see the warning signs of a shock and pivot when necessary — and bounce back — as I wrote in January. Developing digitized data, integrating communications, and automating processes to improve performance are some of the crucial steps. And each requires a knowledgeable and proactive workforce.

Looking to the future of resilience

To build resilience, address vulnerabilities. As software company SAP explains, “The most resilient and agile supply chains are designed to do more than simply resist and recover; they are built using processes and modern supply chain technologies that allow them to forecast, anticipate, and respond quickly to whatever risks or opportunities the future brings.”

It’s a hopeful message: not just one about disruptions and challenges and shocks, but new prospects and chances for renewal. And it’s the right mantra for the rest of 2023 and beyond.

Your organization can achieve supply chain resilience. Start with the pillars, strategies and tools highlighted above and build a supply chain resilience plan to mitigate risks and disruptions. Start by advancing your supply chain resilience knowledge and skills with the ASCM Supply Chain Resilience Certificate.

Are You Playing the Long Game? Sustainable Resilience in a Changing Climate

Fri, 14 Mar 2025 00:00:00 -0500

Supply chain resilience has remained a critical initiative for several years, recognized by industry professionals as essential for sustainable success. While the immediate economic impacts of resilience strategies — such as vendor diversification and optimized inventory management — often receive the most attention, supply chain professionals must maintain a long-term perspective. Though quick economic gains are important, true resilience allows for lasting stability.

When it comes to prioritizing resilience, it’s easy to make a clear business case. In the ASCM Insights Blog, Editor-in-Chief Elizabeth Rennie puts it this way: “It's no longer just about managing risk; it's about gaining a true competitive advantage. Time and again, companies that prioritize resilience are better positioned to minimize the impact of disruptions, respond quickly to changing market conditions, deliver products and services to customers on time and within budget, and boost customer satisfaction.”

However, building resilience isn’t just about the bottom line; it requires a strong commitment to sustainability to ensure lasting results. Unfortunately, sustainability has fallen out of favor in some political circles, leading to greenhushing or, as the MIT Sloan Management Review notes, “slowing clean economy initiatives” and even “blanket support for fossil fuels.” The Review warns: “If you believe in the business and societal benefits of sustainability … the time ahead could be rough.”

Despite broader macroeconomic tension, a recent Bain & Company report found that “brands scoring highest on sustainability have as much as 10 times higher revenue growth than traditional competitors.” And communicating a clear value system — despite what’s happening in the federal government or on Wall Street — sets organizations apart from the companies that change their stances when goals are difficult or politically unpopular, or who are in it for the PR.

“Don’t expect short-term wins, but rather long-term loyalty. Sustainability for most organizations is not a money-spinner,” The Times notes. “In five years’ time, though, your reputation and credibility are likely to have a direct and lasting influence on buying behavior.” Further, the World Economic Forum warns that climate-related disruptions could cut corporate earnings by 7% annually by 2035. But this isn't just about profits; these disruptions, from extreme weather to resource scarcity, directly degrade ecosystems and harm communities. As industry leaders, we have a clear and crucial responsibility to protect both our businesses and the planet we share.

Up to the challenge

One way to keep the focus on sustainability is to discover the latest resilience innovations and initiatives from world-class supply chain organizations. To that end, I hope you will join ASCM’s Doulgas Kent, executive vice president of corporate and strategic alliances, who will be on the ground as the official supply chain educator at two exciting events: The American Manufacturing Summit (March 19-20) and the American Supply Chain Summit (May 1-2) will provide valuable insights into operational resilience, supplier relationships, performance efficiency and optimization, and much more. Don’t miss Kent’s three insightful panels, where long-term vision meets actionable strategy.

Participate in our LinkedIn poll and let us know what you think about the best way to prioritize supply chain resilience.

Get a CPG Demand-Forecasting Edge

Mon, 10 Mar 2025 00:00:00 -0500

The consumer packaged goods (CPG) industry thrives on anticipating what people want — ideally before they even know it themselves. Demand forecasting, the process of predicting customer demand for products, is the key to success in this competitive landscape. It's more than just a numbers game; it's a strategic imperative that influences everything from inventory levels and production planning to revenue growth and supply chain resilience. And in a world of ever-shifting consumer preferences and near-constant supply chain volatility, getting the forecast right is more challenging than ever.

CPG companies must balance the equally critical objectives of high perfect order rates and lower overall costs. This delicate equilibrium requires timely planning, robust collaboration and rigorous adoption of sales and operations planning (S&OP). Effective S&OP is, in fact, the bedrock of accurate demand forecasting, providing the insights needed to make informed decisions across the entire supply chain while enabling tighter cross-functional integration and the agility needed to respond to volatile demand.

What can be gained

Demand forecasting excellence in the CPG space industry offers a multitude of benefits, ultimately contributing to a healthier bottom line and a more efficient supply chain. To begin, optimized product availability directly translates to increased sales as shelves are consistently stocked with the right products at the right time. Furthermore, minimized waste and enhanced product freshness are achieved through precise stock allocation, resulting in reduced spoilage.

Improved inventory turnover is another significant advantage, as less safety stock frees up valuable capital and enhances supply chain efficiency. Moreover, proactive and optimized markdowns, informed by accurate forecasts, contribute to better profit margins. Enhanced capacity usage also can be realized, as improved visibility into capacity requirements allows for proactive bottleneck resolution and streamlined operations. Finally, forecast-based shift optimization leads to reduced personnel costs in both stores and distribution centers, further contributing to overall operational efficiency.

Making it work

Demand forecasting in CPG requires a nuanced approach, blending historical analysis with a keen understanding of current market dynamics. Again, this is not merely about crunching numbers; it's about building a predictive model that reflects the complex interplay of numerous factors. To effectively implement these considerations within your own company, consider the following:

Historical demand patterns: Begin by establishing a robust data collection system to capture detailed sales data. Leverage time-series analysis techniques to identify recurring trends, seasonal fluctuations and growth patterns. Incorporate a wide range of data sources, including consumer insights, market trends and external factors. Visualize this data to gain a clear understanding of your product's historical performance.

Embrace tactical S&OP: As previously noted, S&OP is critical. Help your team shift from static, top-down planning to a dynamic, collaborative, impact-assessment-based strategy. Be sure to also define roles, responsibilities and metrics clearly for all stakeholders involved in the S&OP process. And it’s helpful to conduct more frequent planning sessions at the regional level to respond to local variations.

Maximize technology: While spreadsheets and manual calculations were once the norm, today's CPG companies rely on sophisticated software powered by artificial intelligence and machine learning. These technologies can process massive datasets, identify complex patterns and generate accurate forecasts at a granular level — by product, location and even time of day.

Internal business decisions: Create a collaborative platform where marketing, sales and product development teams can share upcoming initiatives. Integrate promotion schedules, pricing strategies and new product launch timelines into your forecasting model. Quantify the expected impact of each decision on demand.

External factors: Subscribe to reliable weather forecasting services and integrate this data into your model. Track local events and competitor activities using market research tools and news alerts. Also consider economic indicators including inflation rates and consumer confidence indices.

Consumer and brand insights: Conduct regular consumer surveys and focus groups to gather feedback on product preferences and brand perception. CPG companies, in particular, can learn so much by analyzing social media trends and online reviews to identify emerging consumer demands. Use this data to refine your product development and marketing strategies.

Shipment histories: Implement a transportation management system to track shipment data in real-time. Analyze delivery times, transit costs and potential bottlenecks. Also identify areas for improvement in your logistics network.

Supply constraints: Conduct regular capacity planning meetings with your production and procurement teams. Identify potential limitations in raw material availability, manufacturing capacity and storage space. Anticipate potential related problems and develop contingency plans to mitigate constraints.

Foster collaboration and prioritize transparency: Establish strong relationships with suppliers and retailers to share data and improve visibility across the supply chain. Ensure that the demand forecasting system is transparent and that all partners understand how forecasts are calculated.

Financial targets: Finally, align your demand forecasts with your company's overall financial goals. Collaborate with finance teams to understand revenue targets, cost constraints and profitability objectives. Use forecasting to assess the financial impact of different scenarios and make informed decisions.

As technology continues to advance and consumer behavior becomes even more unpredictable, accurate planning will be more and more essential. By mastering the art and science of demand forecasting, CPG companies can proactively predict consumer demand, positioning themselves for long-term success.

The Resilient Supply Chain Benchmark is designed to help you understand industry best practices and evaluate your own capabilities. Explore our benchmark today and take the first step towards a more resilient supply chain!

Stalled Progress, Lost Potential: Supply Chains Must Reprioritize Women's Contributions

Fri, 07 Mar 2025 00:00:00 -0600

Women make supply chain organizations stronger and help position our companies for sustainable growth and meaningful bottom-line results. Unfortunately, new research this week finds that progress in increasing women's representation in supply chain has stalled, contrary to expectations.

There are several potential reasons for this, per a recent Gartner study:

Weak company goals. While 70% of supply chain organizations have an objective to increase the number of women leaders, only 29% have direct accountability for this goal. This point is supported by Anna Petrova, senior vice president of operations, end-to-end supply chain, at Coty. In an interview with our editor-in-chief, she told ASCM that success requires a “clear career path and an agreed-on development plan involving training, project work and special assignments.”

Relying on only HR to reach diversity, equity and inclusion targets. Supply chain leaders know what it takes to be successful in the field — and why it’s so crucial to ensure women join the ranks. But HR professionals may not have the same incentives to attract women to supply chain positions specifically. Effective recruitment requires supply chain leaders to partner with HR, providing guidance on necessary skills, career paths and cultural adjustments to attract and retain female talent.

Pay inequity. It’s no secret that women are compensated less than men in this industry and most others. In 2024, a lower percentage of supply chain organizations had a plan to close these pay gaps, when compared to the findings of the 2023 Gartner survey. What’s worse, even more businesses reported having no plans to close their current gaps. This is disheartening news, especially since ASCM research finds salaries for supply chain professionals have been rising overall.

Lack of flexibility. Many supply chain roles are designed with a traditional work model in mind, often requiring long hours, inflexible schedules and extensive travel. This can disproportionately affect women, who so often have caregiving responsibilities. Lisa Veneziano, who spent 35 years at GM before serving as ASCM’s board chair, urges companies to attract women by allowing more flexibility and offering part-time roles, job sharing and robust childcare.

Importantly, the value of including women in supply chain roles isn't just about solving the talent shortage: “Diverse views and approaches can create innovation in any situation, and a range of skill sets can contribute to solutions,” notes The Manufacturer. “Women offer a different perspective and enhance the capabilities of teams.” This assertion is supported in data: Companies with representation of women exceeding 30% are significantly more likely to financially outperform those with 30% or fewer,” per McKinsey.

Meaningful results

This Women’s History Month, I urge you to consider the above points and how you can use this knowledge to support and advance the women at your own supply chain organization. Then, keep learning even more about this important issue by joining us for CHAINge; the Europe event is June 17-18, and North America is September 9-10. ASCM is proud to feature many women thought leaders, who will share their expertise in AI, visibility, forecasting, strategic sourcing and so much more. CHAINge is a transformative experience that’s redefining the future of supply chain to help us all create more dynamic, inclusive global supply chains. Be part of the change!

Participate in ASCM’s LinkedIn poll and let us know about your thoughts on attracting and retaining women in supply chain.

Tech + Talent: The Essential Supply Chain Equation

Fri, 28 Feb 2025 00:00:00 -0600

From AI-powered code optimization to the latest manufacturing advances to nuanced management of inventory in a post-just-in-time world, the modern supply chain is a tapestry of innovation. Yet, while some reap the rewards of forward-thinking tools and processes, others struggle to realize the workforce's crucial role in successful adoption. These diverse narratives underscore a singular truth: Technology's transformative power is undeniable, but its true potential is only unlocked when strategic vision meets human skill.

This week in the news is a story about Walmart’s swift move to embrace AI-powered coding assistance and completion tools, which helped the retail giant save “4 million developer hours by streamlining deployments and delivering code faster with fewer bugs,” per Grocery Dive. Beyond time-savings, this also translated to real bottom-line dollars: Walmart’s revenue was up 4.1% ($180.6 billion) last year. Likewise, General Mills saved more than $20 million in 2024 after using AI to cut transportation costs and boost customer service levels, notes CIO Dive.

Tech giant Apple certainly knows the value of investing in technology. This week, the company announced its intention to spend $500 billion over the next four years for “construction of a large AI server factory in Texas,” as well as about 20,000 research and development jobs across the United States, Economic Times of India reports. Apple also plans to collaborate with Taiwan Semiconductor Manufacturing Co. to produce silicon chips at TSMC’s Arizona plant, doubling its advanced manufacturing budget from $5 billion to $10 billion.

Digital tools are also enabling supply chains to meet modern inventory management goals. For instance, AI and ML “create predictive insights and algorithm-based forecasting methods,” Supply Chain Brain reports. “By deploying these cutting-edge technologies, companies can build more resilient inventory management strategies — and gain a competitive advantage in the disrupted global supply chain.”

Still, there's a noteworthy contradiction within the tech and talent realm, which is top-of-mind for many workers today: Although innovation opens doors in many professions, it can negatively affect others. Case in point: AI-driven automation poses potential job displacement among coders, software testers and data analysts. Yet it also creates a wealth of new opportunities in research and development, predictive maintenance, and automated inventory management.

Another news item this week demonstrates this point: The International Longshoremen’s Association successfully negotiated a contract that guarantees employment even amid the introduction of automation. The union's strategic use of a short strike, coupled with political backing, resulted in significant job security provisions, illustrating how organized labor can help mitigate any negative impacts of technological advancements on employment.

The human element is paramount

There’s no doubt that the latest innovations drive supply chain progress; however, it's the people behind the technology who determine its ultimate impact. After all, the success of any tech investment hinges on a workforce that is equipped to use it to its full potential. This leads to the critical question of how organizations can cultivate the skills and engagement necessary to drive success. That’s where ASCM’s education comes in.

Through the Supply Chain Technology Certificate, you and your team will discover how predictive analytics, AI and robotics can enhance efficiency, reduce costs and mitigate risks across your network. You’ll learn how to use advanced forecasting technologies and data integration to improve supply chain reliability. And you’ll leverage blockchain to enhance transparency.

ASCM’s Certified in Transformation for Supply Chain designation takes this even further to enable true systems thinking and digital fluency for all types of networks. This industry-leading certification provides essential expertise for leading end-to-end supply chain transformation.

Align your talent capability and competencies to the technology investment that continues to permeate through almost every aspect of supply chain. Begin today.

View the results of our recent LinkedIn poll and share your thoughts in the comments.

The Future of Transportation and Logistics Is Circular

Tue, 25 Feb 2025 00:00:00 -0600

The circular economy emphasizes minimizing waste and maximizing the lifespan of products and materials. By prioritizing reuse, repair and recycling, circularity seeks to achieve economic growth while minimizing the consumption of finite resources. This involves shifting from a linear model to a cyclical one, where materials are kept in use for as long as possible and waste is minimized or eliminated altogether.

By embracing circular economy principles, the transportation and logistics sector can optimize routes to minimize empty miles and fuel consumption, apply renewable energy sources for vehicles and operations, promote the use of reusable and recyclable packaging materials, and facilitate the efficient return and reuse of goods. Each of these activities meaningfully contributes to a more sustainable future while creating business opportunities — for instance, developing new services such as product repair and refurbishment and facilitating the reuse and recycling of transportation equipment.

One of the primary challenges lies in the complexity of managing reverse flows. Integrating reverse logistics into existing networks requires careful planning and coordination, including the development of efficient collection systems, sorting facilities and remanufacturing centers. Furthermore, the increasing volume and diversity of materials involved in circular economy flows pose significant logistical challenges, demanding flexibility, adaptability and robust data management systems.

Implementable steps

The circular economy necessitates a significant shift in traditional transportation and logistics models. It requires new infrastructure, processes and technologies. Following are several proven strategies to consider:

First and foremost, prioritize sustainability in all operations. Integrate sustainability considerations into all aspects of transportation and logistics operations, from vehicle selection and fuel choices to warehouse design and waste management.

Digitization plays a crucial role in enabling circular logistics. Technologies such as the internet of things (IOT) and blockchain can track product life cycles, improve visibility, optimize resource use, and facilitate collaboration across the supply chain. Use advanced technologies such as artificial intelligence and machine learning to optimize routes, minimize empty miles and reduce fuel consumption.

Invest in intermodal transportation and infrastructure. Begin by encouraging the use of rail, water and other more sustainable modes of transport whenever possible. Then, develop and improve infrastructure — especially elements involved with the collection, sorting and processing of goods and materials.

Successful implementation of circular economy principles requires collaboration among all stakeholders, including transportation and logistics providers, manufacturers, policymakers, and partners. To develop and implement circular economy solutions, prioritize data sharing and open communication to identify opportunities, improve resource use and ensure the smooth flow of goods.

The last mile of delivery presents unique challenges in a circular economy. To achieve efficient and sustainable collection and return of products, look to micro-mobility solutions, drone delivery and the development of local collection points.

Fostering a culture of sustainability within the transportation and logistics industry is crucial. This includes educating employees, investing in training programs and setting ambitious sustainability goals.

By embracing innovation, fostering collaboration and prioritizing sustainability, providers can play a vital role in building a more sustainable and resilient future for our planet. This transformation will require significant investment in technology, infrastructure and human capital, but the potential rewards make it a critically important endeavor.

The CLTD certification provides the expertise needed to manage these complexities and position yourself as an expert in your organization.

Weak Links in the Food Supply Chain

Fri, 21 Feb 2025 00:00:00 -0600

Imagine grabbing a quick sandwich, only to end up in the hospital. Or slicing into an apple and unknowingly exposing your family to dangerous bacteria. These aren't hypothetical scenarios; they're the reality for a startling number of people.

Last year, food recalls due to Salmonella, Listeria and E. coli were more widespread and deadlier than in years past, according to a new CNN report: “Contaminated food is causing a growing number of illnesses in the United States, and severe cases that lead to hospitalization or death are becoming more common.” In fact, more than twice as many people were hospitalized or died in 2024 than 2023 because of infected food. Interestingly, there were fewer recalls overall, likely a result of less “proactive testing by state and federal regulators,” the article continues.

Two major incidents included Boar’s Head deli meats and the onions found on McDonalds’ Quarter Pounder burgers. Together, they accounted for 11 deaths, close to 100 hospitalizations and many more illnesses, CNN reports. Another outbreak of Salmonella last summer was associated with cucumbers. It’s common for food-borne illnesses to come from produce because fruits and vegetables are often uncooked. Note that bacteria spread can be prevented with thorough handwashing and other sanitary measures.

President Obama enacted The Food Safety Modernization Act in 2011, which put dozens of food-related rules in place, including “good manufacturing practices, agricultural water, sanitary transportation, hazard analysis and mitigation strategies to protect our food.” And the CDC is getting better at detecting and tracing outbreaks with the help of technological advancements, such as whole genome sequencing. This process is akin to giving each germ its own unique barcode, making it much easier to track and connect cases.

Unfortunately, the head of the Food and Drug Administration quit this week in protest of the mass firings and layoffs in the FDA and throughout the government, The Guardian reports. “Specialists in nutrition, infant formula and food-safety response, including 10 staff members responsible for reviewing potentially unsafe food ingredients, were targets of layoffs. In total, 7,000 probationary employees at U.S. Department of Health and Human Services agencies were terminated, The Washington Post notes.

Major names in food safety and consumer protection advocacy have voiced their concerns about the effects these layoffs will have on the food supply chain, per Food Safety Magazine. Their statement urges: “Adequate resources are critical for outbreak response, developing and updating food safety standards, providing science-based industry guidance, and ensuring a well-trained federal-state inspection force to protect the integrity of our food system.”

Safe food for everyone

In addition to government regulations, food safety depends on supplier collaboration and responsible production that prioritizes sustainability, ethical conduct and minimized environmental impact. A great place to learn more about these topics is at The Economist’s 10th Annual Sustainability Week, which includes the event track Regenerative Agriculture and Food Security. The London-based conference also features a new Sustainable Supply Chain and Procurement Summit, and I’m proud to say that I will be presenting on Decarbonization Incentives and Support for Smaller Suppliers. This session will explore how companies weigh sustainability when choosing production locations, implementing new technologies and optimizing delivery routes. Sustainability Week is March 10-12, 2025 — hope to see you there!

Crushed by Tariffs — Craft Brewers Face Uncertain Futures

Fri, 14 Feb 2025 00:00:00 -0600

One of Covid’s lasting effects is an interesting change in many people’s lifestyles. In 2020, as restaurants struggled, many of us stayed home and discovered how to make the most of our pantries. Bakery doors were closed, but the sourdough revolution had begun. Some of us became amateur mixologists and learned how to craft our own cocktails. Profits in the alcoholic beverage trade soared, adding jobs well into 2023. Unfortunately, no industry’s high can last forever, and the latest round of tariffs may end the party for American beer drinkers.

This week, President Trump announced a blanket 25% tariff on all steel and aluminum imports, with the purported goal of increasing demand for U.S.-made products. Unfortunately, these tariffs “are expected to negatively affect the nation’s craft brewers by driving up the cost of critical materials used to brew, house and serve their beer,” reports CNN. Economists believe the tariffs will raise producer prices for steel and aluminum 15%-20% in the coming months — equaling an added import cost of $150 per ton, per Reuters.

It’s also significant to note that, for the first time in nearly 20 years, more craft breweries closed than opened last year. This trend may continue, with significant increases in the cost of essential materials disrupting supply chains and squeezing profit margins. The United States imports about 40% of its steel from Canada and Mexico, and “beer in aluminum cans accounts for approximately 75% of craft breweries’ packaged volume and revenue,” CNN continues. Steel is used throughout the brewing process.

Meanwhile, Pittsburgh-based U.S. Steel is “applauding” the tariffs, per the Pittsburgh Post-Gazette. In a statement to the newspaper, company leaders said that “tariffs, paired with innovative technology and investment, will have U.S. Steel poised to lead a new Golden Age of American steelmaking.” On the other hand, Charlotte-based Nucor, the largest steel producer in the country, has already told its customers to prepare for its “rebar product prices to spike.”

In 2018, Trump implemented tariffs of 25% on steel and 10% on aluminum, Reuters adds, “but later granted several trading partners duty-free exemptions, including Canada and Mexico.” The New York Times summarized the effects this way: “Manufacturers of trucks, appliances and construction equipment scramble to find U.S. sources of metal inputs, keeping steel and aluminum producers busier than they were before. Companies that need specific alloys that aren’t made domestically are forced to pay more. Prices rise, making end products more expensive.”

Keeping spirits high

Tariffs can leave a bitter taste in the mouth, but ASCM education is always pleasing to the palate. Be sure to join global trade expert Tom Cook for Optimizing Sourcing and Supplier Relationships in a Tariff-Risk Landscape. In this webinar, he’ll discuss strategies for mitigating tariff risks and optimizing sourcing and supplier relationships, no matter the global trade dynamic.

And all of us at ASCM are also excited to announce a new version of the Certified in Logistics, Transportation and Distribution (CLTD) credential, which really meets the moment and reflects the most critical changes in our ever-evolving business landscape. The update is specifically designed to equip supply chain professionals with critical knowledge about technology integration, risk management, practical applications and much more. Plus, professionals who earn the CLTD enjoy a 19% salary boost — cheers to that!

Supply Chain Circularity Resources from ASCM

Tue, 11 Feb 2025 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was May 15, 2024

Our planet faces a critical challenge: Unsustainable consumption patterns are pushing us toward environmental tipping points. But the concept of circular supply chains offers a transformative approach and attainable solutions.

The traditional, linear model of "take, make, waste" is demonstrably unsustainable. We extract resources, manufacture products and then discard them, leading to depletion and pollution. The circular economy, on the other hand, prioritizes resource efficiency and minimizes waste. It focuses on three core principles:

Eliminate waste and pollution: By designing products for longevity and recyclability, we can minimize environmental impact.
Circulate products and materials: Extending the lifespan of products through reuse, repair and remanufacturing conserves resources.
Regenerate nature: Sustainable practices such as responsible sourcing and renewable energy use are essential for a healthy planet.

The benefits of circularity extend far beyond environmental protection. Here's a glimpse into the advantages it offers:

Economic opportunity: Circularity fosters innovation in product design, resource recovery and reverse logistics, creating new markets and jobs.
Supply chain resilience: By reducing dependence on virgin materials, circularity mitigates risks associated with resource scarcity and price fluctuations.
Customer satisfaction: Consumers are increasingly drawn to sustainable practices. Circular businesses cater to this growing demand and build customer loyalty.

The path forward

Transitioning to a circular economy requires a shift in basic assumptions. A mindset change is necessary among consumers, businesses and policymakers to embrace circularity as the new normal. Begin with the following resources from ASCM:

ASCM provides a wealth of resources to empower your journey toward a circular supply chain. By implementing these innovative practices, you can contribute to a healthier planet, a more resilient supply chain and a thriving economy. Embrace circularity today – it's the future of responsible business.

Consumers Care About Corporate Social Responsibility – and So Should You

Mon, 10 Feb 2025 00:00:00 -0600

With numerous tools available to help people learn about a company’s corporate social responsibility (CSR) practices, consumers now have higher standards for corporate dedication to sustainability and social rights. A 2019 report by Markstein and Certus Insights found 70% of consumers want to know how the brands they support are addressing social and environmental issues, and 46% pay close attention to these efforts when making purchase decisions. This continues to be true. Harvard Business Review research shows that brands that make and keep promises to people and the planet have a competitive advantage. Still, some decision-makers are unconvinced about the business case for monitoring social and environmental practices and reporting back to consumers. Longer, complex supply chains tend to be more costly to examine, which leaves leaders wondering about the best way to balance consumer expectations and cost.

The authors of this article set out to take a closer look at how a consumer-facing firm can benefit from disclosing supplier-monitoring activities (SMAs) to consumers as an effort to achieve supply chain transparency. Specifically, we chose to measure how consumer attitude toward the focal firm and consumer purchase intention was affected by SMA disclosure. We looked at three different kinds of variables: SMA depth, SMA breadth and SMA monitoring mechanisms.

Dig deep to ensure compliance

SMA depth is pertinent from a consumer perspective because they hold companies accountable for the actions of other members of their supply chains. For example, Mars, Nestlé, Hershey and other major candy manufacturers have come under fire for having child labor deep in their supply chains.

To discern the effects of SMA depth, we created a vignette-based, role-playing experiment to determine how consumer perception of a fictitious technology company, Techmax, changed as the firm offered details about how it monitored its suppliers. We recruited 214 participants from Amazon Mechanical Turk (M-Turk), an online crowdsourcing platform, and gave them this scenario: “You are going to buy a computer. When researching products online, you see the following option from a company called Techmax on an e-commerce site.”

We then randomly assigned participants to one of three scenarios and varied the amount of information presented to them:

In the control scenario, participants were shown basic product information, including brand name and logo, plus product images and specifications. They were given this basic description: “We are passionate about driving human progress through greater access to better technology, for people with big ideas around the world.”
For the first-tier SMA variable scenario, we offered this additional information: “We collaborate with supply chain partners to optimize transportation and materials usage and to increase energy efficiency in our tier 1 (direct) supplier factories.”
In our first- and lower-tier SMA scenario, we gave participants this description: “As a multinational corporation, our direct (first-tier) suppliers procure materials and services from lower-tier suppliers, labeled tier two and tier three. Our supply chains can extend to many more tiers. Hence, compliance must be assured throughout the supply chain. We collaborate with supply chain partners to optimize transportation and materials usage and to increase energy efficiency in our tier 1 and lower tier supplier factories.”

In order to provide field-relevant context, the text in all vignettes was based on actual quotes from other companies’ websites or CSR reports.

Next, we measured people’s attitudes toward the firm and their purchase intention based on the information they viewed. Our analysis showed that the SMA depth had a meaningful effect on both dependent variables. Consumer attitude and purchase intention were both significantly more favorable when the participant was told Techmax conducted first- and lower-tier SMAs. Furthermore, first-tier SMAs generated significantly more positive consumer attitude and purchase intention levels than giving no specific SMA information.

CSR information has a halo effect

In another related study, we measured how the breadth of SMA — in terms of whether the focal firm did environmental monitoring, social monitoring or both — affected consumer attitude and purchase intention. Again, we gave our M-Turk participants a computer shopping scenario, as well as basic information about Techmax computers. We then randomly assigned the 199 participants to one of four scenario groups:

In the control group, participants were given this description: “We are passionate about driving human progress through greater access to better technology, for people with big ideas around the world.” This description also was used in the previous study.
In the environmental-only group, participants were given additional information about efforts to reduce the firm’s carbon footprint, lower energy and water consumption, and recycle waste.
In the social-only group, participants were giving more details about community service engagement, diversity and inclusion priorities, and efforts to wipe out supply chain slavery.
The mixed group was shown a combination of all of the above information.

We measured consumer attitude toward the focal firm as well as purchase intention. Although we expected them to be most positive when consumers were told the focal firm conducted both environmental and social SMAs, this was not necessarily the case. We found that providing some information about the social or environmental dimensions of SMAs was associated with more positive consumer attitude and greater purchase intention than when that information was not provided. However, there was no incremental benefit to communicating details about both types of SMAs. This could be because the information might create a halo effect — meaning that consumers might use information about environmental SMAs to infer that the focal firm also is conducting social SMAs, or vice versa.

How you monitor suppliers matters too

A key insight in both of the tests is that consumers seem to associate more spending on SMAs with more favorable companies and products. In the first test, as Techmax spent more money to monitor lower-tier suppliers, consumer attitude toward the firm improved. Similarly, as the fictitious company invested in environmental or social SMAs, consumer attitudes were more positive.

In the third part of this experiment, we aimed to determine if how a firm monitors its suppliers makes a difference in consumer attitude and purchase intention. In another vignette-based study, we gave our M-Turk participants the computer-shopping objective and then randomly assigned them to one of four groups:

The control group was not given specific information about how supplier monitoring was conducted.
The direct-monitoring group was given an explanation about how the focal firm personally conducted on-site audits.
The indirect-monitoring group was shown information about what tier-1 suppliers were expected to do to monitor lower-tier suppliers.
The third-party-monitoring group was shown information about the third-party supplier audits.

Consumer attitude and purchase intention were most favorable when participants were told the focal firm handled its own SMAs. We expect this is because consumers view direct monitoring as the most expensive approach, as the focal firm incurs time and financial costs to personally visit suppliers for inspections. In indirect monitoring, the focal firm just has to ensure the first-tier suppliers’ cooperation in the monitoring process through financial or relational incentives. Costs seem to be lowest when a third-party is hired to do the monitoring because these agencies have wider expertise and economies of scale.

Interestingly, we did find that communicating both social and environmental efforts is not necessary. This does not mean that companies should not engage in these practices — both are unequivocally important. Instead, consider shorter marketing messages that pique people’s interests.

What can SMA efforts do for your business?

These studies all show that SMAs have a critical influence on consumer attitudes and purchase intention. It’s not enough for companies to passively engage in SMAs when new regulations arise. They must proactively engage in SMAs that will improve their supply chains, then communicate these efforts to consumers.

The benefits are even greater as more investment and care are dedicated to the SMA cause — at least to a point. As our studies show, consumers value efforts to monitor lower-tier suppliers and to take the time to personally affirm that these suppliers are doing a good job. Yes, these are challenging tasks; but the payoffs could very well offset the costs.

Positive consumer perception often is the first step toward a sale. It’s important to show your prospective consumers all of the ethical value your company and products offer. Consumers are watching your SMAs. Don’t disappoint them.

ASCM’s Supplier Relationship Management Certificate can help you deepen supplier relationships. Get the details here to enhance your organizational efficiency.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was October 13, 2021 and based on a Journal of Operations Management Research article published in 2020.

Cut Equipment Waste with Remanufacturing

Mon, 10 Feb 2025 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was November 9, 2021

From the smallest components to the biggest machines, all equipment is subjected to unpredictable field conditions, harsh operating environments and sometimes even abuse. These factors significantly increase the risk of wear and tear, corrosion, and damage. If equipment is not properly maintained, it may need to be scrapped. Worn components contribute to 73 million metric tons of ferrous metal and millions more tons of nonferrous metal and stainless steel scrap.

Remanufacturing worn, corroded or otherwise damaged parts is an important way to reduce equipment waste and the demand on natural resources required to manufacture replacements. According to the ASCM Dictionary, remanufacturing is an industrial process in which worn-out products are restored to like-new condition. In contrast, a repaired product normally retains its identity, and only those parts that have failed or are badly worn are replaced or serviced. In short, remanufacturing gives parts a longer, more reliable lifespan.

Fortunately, remanufacturing is on the rise. The practice already is common in the automobile, heavy-equipment and off-highway vehicle (OHV) sectors and is expected to grow into the marine and aerospace industries as well as others. Examples of components that can be remanufactured include landing gear for aerospace vehicles; diesel engines in OHVs; as well as many types of pumps, valves and turbines. Remanufacturing also helps drive down the total cost of ownership of expensive equipment and, of course, has a positive impact on sustainability efforts.

However, there are other considerations with remanufacturing. First, it’s important to consider the environmental effects of the selected remanufacturing process. In addition, remanufacturing typically results in downtime for the equipment that is being restored — and that cost needs to be balanced with the benefits of remanufacturing, especially because the costs of downtime can quickly add up. In industries including marine and shipping, power generation, and mining, it is vital to use remanufacturing methods that quickly, cost-effectively and sustainably enhance components, improve wear resistance and repair damage.

An efficient solution

Selective plating — also known as brush plating — is a remanufacturing process that addresses these challenges. This is a method of repairing and restoring critical dimensions and the surface properties of worn components back to original equipment manufacturer standards by using an array of solutions, such as copper, nickel, nickel-tungsten and cobalt.

The process tends to have far less environmental impact compared with other surface-coating methods. Selective plating uses less solution and fewer chemicals; generates very little waste; and reduces the carbon costs of emissions, transportation and shipping. In addition, because the process reduces fumes and hazardous waste, it offers a safer and healthier working environment for those who do the brush plating.

This portable method of electroplating can be used to treat specific areas of a component with accurate, selective brush plating of materials onto localized surfaces and diameters, enabling in-situ repair and enhancement that typically is faster than alternative surface-coating methods. Because the work can be completed on-site, the process reduces the downtime and costs associated with disassembly, transport and reassembly. Selective plating also allows for more accurate control of deposit thicknesses, often enabling parts to be plated to size with no post-machining, which also reduces equipment downtime.

As opposed to tank plating – the other major method in electroplating –– selective plating does not require extensive masking or special fixtures. It also can plate deposits between 30 and 60 times faster with no risk of part distortion because the process takes place at room temperature. All of this combines to make this particular remanufacturing process a faster, more cost-effective and lower-risk option.

The science of selective plating

It’s the science behind selective plating that makes it so effective. Given the continuous use and sometimes harsh direct impact experienced when equipment and machinery is in operation, selective plating needs to bond at the atomic level. This is something not provided by traditional surface-coating methods, such as thermal spray, which only forms a mechanical bond.

To create this atomic bond, selective plating uses electrochemical principles: An electrolyte solution containing ions of the deposit material is introduced between the negatively charged plating surface and the positively charged tool. The tool is powered by a portable power pack, which enables precision control over amperage, voltage and duration.

When the tool — or anode — touches the surface, a circuit is created, with a cover material around the tool providing a reservoir to ensure even distribution. The current within the circuit causes the ions between the interfaces to bond, building up the plating layer and delivering a highly adherent and dense metal deposit.

Selective plating in practice

Selective plating has proven to be especially useful in remanufacturing components for heavy equipment. Because of their size, cost and lead time, replacement parts for heavy equipment typically are not available on short notice, so remanufacturing is the best approach to keep the equipment running.

A common scenario is damage to hydraulic rods and rams, which ranges from light scratches to deep impacts and corrosion damage. These can be permanently repaired with selective plating. Defects typically are repaired with one or more layers of copper and then covered with a wear-resistant deposit with good release or wetting characteristics. For rods and rams that are made of carbon or stainless steel and that have been plated with chrome or nickel, copper is applied to the damaged area and then dressed back to just below the surface. Finally, a thin layer of cobalt-nickel is applied to a slightly larger area and then polished to match the surface texture.

For a fast-moving quarter of the world’s industrial landscape, remanufacturing and selective plating present a distinct way to do things better. The process offers wear resistance, surface hardness and corrosion protection, as well as a host of other efficiency and environmental benefits. Ultimately, selective plating returns vehicles, machines and equipment to operational effectiveness for a longer life of efficient and reliable service, with minimal downtime in the process.

Learn how you can be the transformative leader your team needs by earning your CTSC. The program uses components from Enterprise Standards for Sustainability and the Digital Capabilities model to identify tools and technologies to enable effective supply chain transformation.

Tariff Moves Create Countless Questions

Fri, 07 Feb 2025 00:00:00 -0600

As a community, supply chain professionals have been contemplating tariffs — their efficacy and their effects — for years. Of course, in 2024, as the U.S. presidential election was heating up, the topic became even more critical. When President Trump won, we imagined the potential for impact due to new tariffs with a keen sense of urgency, recalling the increased prices hefty tariffs caused during Trump’s first term. Now officially in office, he’s wasted no time proving that he’s serious about using tariffs to achieve a myriad of goals.

This week, the Trump administration took swift action: Across-the-board 25% tariffs were levied on our neighbors and allies, Canada and Mexico, last Saturday — only to be walked back on Tuesday, when an apparent deal was reached with the respective presidents to increase drug enforcement and reduce the number of migrants. Despite the abrupt turnaround this week, it’s unclear when and how tariffs will be reinstated when the 30-day suspension is over.

To investigate how the tariffs will affect supply chains, ASCM held a LinkedIn Live event with Executive Vice President Douglas Kent, supply chain thought leader Alastair Charatan and myself, which included a real-time Q&A. We had a vibrant discussion in the comments during the event, so here I'd like to address as many points as possible. They include questions about which industries might prioritize nearshoring, strategies for managing disruption, applying process changes to help mitigate effects, political and economic tensions, and more. (For anyone who couldn’t attend, watch the full recording of discussion online now.)

As Kent noted, industries that will be hit hardest by these tariffs include manufacturing, retail and agriculture. He also said that automotive companies should be concerned, as the volume of materials used in production — such as electronics built in Mexico — come predominantly from outside the United States. Unfortunately, these parts can’t just be “switched on a moment’s notice,” Charatan explained, because they “may be safety-critical or specialist technical parts.” In addition, a significant amount of lumber is imported from Canada, Kent went on to say, affecting construction especially. Both experts agreed that the costs will most likely be passed on to consumers, not suppliers.

Meanwhile, nearshoring production to both Mexico and Canada had lately been a goal of American companies in order to avoid overreliance on China. Those businesses that have made the good-faith effort to move production in recent years also may be at risk. But as I shared during the discussion, we need to further invest in infrastructure and talent in the United States to support increased manufacturing capacity and capability.

The 10% tariffs on China remain in place for now, leading to “a burst of retaliatory measures” targeting U.S. goods and companies, The Wall Street Journal reports. China “imposed 15% tariffs on U.S. coal and liquefied natural gas imports, while raising levies on crude oil, agricultural machinery and certain vehicles.” However, economists quoted in the Journal point out that China’s reaction is “high on symbolism, low on actual dollar impact” because the tariffs are quite narrowly applied.

“Trump has signaled that his approach to negotiations is to keep friends and foes alike off balance,” notes NBC News. In the face of the uncertainty of future tariff hikes, companies need to adopt solid strategies to avoid disruption in their networks.

An ongoing discussion

For more on this wide-reaching topic, register for the upcoming webinar Optimizing Sourcing and Supplier Relationships in a Tariff-Risk Landscape with global trade expert Tom Cook. He’ll provide a comprehensive overview of strategic sourcing and supplier management within the evolving context of tariff mitigation. And further your expertise by earning ASCM's Supplier Relationship Management Certificate. You'll gain essential knowledge and best practices that will enable you to transform your supplier relationships into true competitive advantages.

3 Principles of Circularity to Redefine Supply Chains

Tue, 04 Feb 2025 00:00:00 -0600

Global resource extraction and processing exert a significant toll on our planet, contributing to more than 90% of global biodiversity loss and water stress. As supply chains grow exponentially in complexity and scale — driven by factors including e-commerce and globalization — the environmental impact becomes ever more concerning. In 2025 and beyond, the need for sustainable practices is more critical than ever. Key circularity topics gaining prominence include:

Decarbonization of supply chains: reducing carbon emissions across the entire supply chain, from sourcing to delivery. This includes transitioning to renewable energy sources, optimizing transportation routes and minimizing reliance on air freight.
Digital traceability and transparency: leveraging technology to track products and materials throughout their life cycles. This heightens visibility into environmental and social impacts and enables more informed decision-making.
Regenerative agriculture: promoting sustainable farming practices that restore soil health, enhance biodiversity, and reduce environmental impact.
Extended producer responsibility: shifting the responsibility for end-of-life product management to manufacturers, incentivizing them to design for durability, recyclability and repair.

The good news is that a powerful solution lies in the adoption of circular supply chains. Unlike traditional linear supply chains, which follow a take-make-dispose model — extracting raw materials, manufacturing products and ultimately discarding them as waste — circular networks aim to create closed-loop systems that curb waste and boost resource efficiency. This is achieved by focusing on three key principles:

First, designing for reuse and recycling is paramount. When products are intentionally designed with their end-of-life in mind, this helps ensure they can be easily reused, repaired or recycled, thereby reducing the demand for virgin materials.

Second, reducing waste and emissions must be a core objective. It’s essential to minimize waste generation and emissions at every stage of the supply chain — from raw material extraction and manufacturing to product transportation, use and disposal.

Finally, optimizing resource use is crucial. This involves employing strategies such as using renewable energy sources, reducing water consumption in manufacturing processes and implementing innovative techniques such as 3D printing to minimize material waste.

Advantages to going circular

By embracing these principles and creating closed-loop systems, circular supply chains offer a multitude of benefits. Economically, they drive significant cost savings. Less waste and optimized resource use help cut costs by enabling companies to reuse and recycle materials instead of constantly purchasing new ones. Furthermore, improvements in operational efficiency, such as streamlined transportation and logistics, contribute to substantial cost reductions. Additionally, circular supply chains unlock new revenue streams. Product-as-a-service models, where customers pay for access to a product rather than ownership, incentivize companies to design durable, long-lasting products that are easily repairable. This not only reduces waste, but also fosters a stronger customer relationship and generates recurring revenue.

Environmentally, the impact of circular supply chains is profound. By minimizing emissions associated with resource extraction, manufacturing, transportation and disposal, companies can play a crucial role in combating climate change and air pollution. Moreover, by prioritizing reusability and recycling, circular supply chains reduce the demand for virgin materials, thereby conserving natural resources and mitigating the environmental impact of resource extraction. Consequently, less waste ends up in landfills, reducing the environmental damage associated with landfilling and the release of harmful methane emissions.

Socially, circular supply chains contribute to a more sustainable and equitable future. The recycling and repair industries associated with these systems are labor-intensive, creating numerous job opportunities. Furthermore, by reducing waste and pollution, circular supply chains contribute to a healthier environment for communities, improving overall quality of life.

The impact of circular supply chains also extends beyond individual companies. They have the potential to transform entire industries by fostering innovation and driving economic growth. New business models emerge, and companies are incentivized to design products for longevity and repairability, promoting resource efficiency and driving innovation.

Furthermore, circular supply chains optimize supply chain operations by prioritizing resource efficiency and waste reduction at every stage. This translates to increased efficiency in transportation and logistics, leading to reduced costs and a minimized carbon footprint.

Preparing for success

While the advantages of circular supply chains are numerous, there are also challenges to overcome. Shifting consumer behavior toward embracing product reuse and repair can often require significant educational efforts and awareness campaigns. Furthermore, implementing circular supply chains can be complex, as it involves the coordination and collaboration of multiple stakeholders across the entire supply chain.

As such, transitioning to a circular economy requires a multi-pronged approach. Collaboration among businesses, governments and nongovernmental organizations is essential to develop and implement effective circular economy strategies. Likewise, supportive government policies and incentives can encourage businesses to invest in circular supply chain initiatives. Look to ASCM for valuable resources as you begin your circular journey:

Transformation solutions: Uncover opportunities to make measurable changes
Certified in Transformation for Supply Chain: The education you need to transform your network into a circular powerhouse
Q&A: Sustainable Supply Chains Via the Circular Economy
Blog post: Essential Connections: Supply Chain Circularity Together

By addressing key challenges and fostering collaboration, supply chains everywhere can unlock the full potential of circularity and create a more sustainable and resilient future for our planet and its people.

Sustainable Supply Chains Via the Circular Economy

Mon, 03 Feb 2025 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was March 28, 2022

The linear economy of “take, make and waste” unfortunately remains the status-quo, despite being inherently unsustainable. Back in 2019, the United Nations has identified the circular economy as a crucial tool for meeting Paris climate goals, although making the shift involves several challenges. A recent report from the Circle Economy Foundation found that even though people are more aware of circularity, most materials used in the economy are still new (virgin) rather than recycled. The percentage of recycled materials has decreased from 9.1% in 2018 to 7.2% in 2023.

I had the opportunity to interview strategic supply chain risk expert Omera Khan and circular economy strategist and CEO of Coreo, Ashleigh Morris, to learn about the model’s benefits and challenges, as well as the industries with the potential to go circular.

Rennie: What are the benefits of the circular economy?

Morris: A circular economy is made up of three ideas: firstly, it designs out waste and pollution from our world. Secondly, it keeps products and materials at their high value for as long as possible. And finally, it regenerates our natural systems. … It serves people and nature, as opposed to our current linear economy, which people and nature serve. It’s an economy where purposeful business can thrive.

But the circular economy is more than a cool idea; it’s critical to our future. The global population is projected to reach nearly 10 billion people by 2050. Research tells us that moving to renewable energy and implementing energy efficiency measures can address 55% of global greenhouse gas emissions, but this isn’t enough. To complete the picture and achieve the UN climate goals, we must implement the circular economy with a particular focus on how we produce and consume key materials.

Khan: A circular economy provides a framework for producing a more sustainable, resilient, and regenerative ecosystem. Shifting from the traditional linear extractive model to a more circular economy — which focuses on eliminating waste, keeping materials in use for longer and avoiding the consumption of finite resources — will enable a more restorative and regenerative economy. Fundamentally, it will support the health and wellbeing of our planet.

Rennie: What are the key challenges involved?

Morris: The biggest challenge is changing the mindsets of not only consumers, but businesses and their supply chains, governments and their policies. Support needs to come from the top. Currently, the incentives to be more sustainable are only peripheral; people feel like they are contributing by installing solar panels on the roof or recycling garbage in the correct bins. But this is too little.

We need a fundamental change in behavior. Incentives to do so must be supported by governments, because you can expect little progress if electrifying and greening our lives is costly for households. Businesses must also do more: Throw-away fashion, for example, should be eliminated; businesses that contribute to waste should be penalized; and there needs to be commitment from raw material source providers to move toward a sustainable, regenerative design. … Currently, we have islands of excellence and isolated glimmers of hope. What we need is a much more coordinated circular economy approach.

Khan: The hidden metric involved in accelerating a circular economy is the shared understanding of the need to act: Linear thinking is the barrier to shared understanding. We are caught in a disillusion that our systems are immovable, inflexible and prohibit the lateral creation of new stories with collective endings. This is not the case. If we change the story, we change the system.

Meaningful action toward a circular economy is being held back by a paralyzing fear of failure. With so many armchair critics looking on; so many nay-sayers highlighting why something may not work; and so many short-term cycles for policymakers, company executives, and government agency funding, it is a brave leader who takes up the mantle to do something differently and turn the tide.

While environmental, social and governance frameworks and corporate social responsibility programs are gaining traction, there aren’t many leaders truly embracing a systems-based solution such as circularity, even though it’s the only way to tackle systemic problems.

To encourage circular projects, innovative financing models are needed to reward desirable developments and limit undesirable ones. It will also require the average CFO to broaden their definition of value.

We need a long-term perspective and to crunch the numbers within the existing financial frameworks for that cost-benefit analysis, but new financing models may need to be developed for circular projects. Can we adapt the system so that circular projects qualify for new specialized funding, financing, grants, or tax concessions? What can public authorities and funders do to help advance circular projects, given their social and environmental value, sustainability, and long-term resilience?

Rennie: Which industries have the most potential to go circular?

Khan: The shift to a circular economy won’t happen all at once. Rather, it is likely to happen industry-by-industry. For instance, going circular in the fashion industry means reusing and mending clothes, eliminating the throw-away culture, and bringing in a heritage/retro culture where second-hand clothes are seen as trendy and cool. We also need to use better material to produce clothing that lasts longer.

Morris: The mining industry is well-positioned to shift from an extractive and transactive model to a resource development industry. Precious metals are precious because they are finite, and yet their value is infinite — meaning, they never break down or lose their core worth. The industry is beginning to adopt circular economy initiatives that are moving from downstream measures such as recycling, to upstream material design innovations. We’re seeing nanolaminated materials that outperform conventional metal, and the capture of value from tailings and slags, to new strategic partnerships underpinned by low-carbon values alignment by the likes of Tesla and BHP.”

Morris: An editorial in the Guardian UK explored the conundrum facing the construction industry: tearing down an old structure and building a new one is cheaper than refurbishment or remodeling. Yet doing so churns through fossil fuels, contributes to climate change, and creates mountains of rubble waste.

The industry stands to harness extensive beneficial outcomes and have a transformative impact on cities by adopting the circular economy. Modular materials and 3D printing are already enhancing productivity and driving down costs. On the planning side, building information modelling and lean construction provide the insights and tools to more efficiently plan, design, construct, and manage buildings and infrastructure.

Adoption of IT solutions and collaborative processes can help unlock the benefits of the circular economy, saving businesses money, making businesses money and rebooting how the industry works.

Glimmers of hope

The good news is that public awareness of the need for a circular economy is growing fast. Concern and press coverage are rising about problems including plastic waste, inefficient packaging, and e-waste. Meanwhile, since 2018, China's National Sword policy banned the import of most plastics and other materials deemed recyclable. This forces Western economies to find more innovative ways to deal with their waste.

We simply must rethink the industrial models of the past. The circular economy provides a new model to fundamentally change our behaviors and make this goal a reality.

Your business can help make the world a better place by adopting sustainable supply chain practices. Learn more about how you can create a sustainable supply chain.

Structure Your Manufacturing Operations for Sustainability and Savings

Mon, 03 Feb 2025 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was December 1, 2022

Consumer demand for eco-friendly products and services, employee interest in working for ethical and responsible companies, and government regulations regarding greener operations are pushing sustainability to the forefront of business agendas. But there’s one more key driver of this movement: Sustainability initiatives can increase net profits.

Although many companies are aware of resource-optimization techniques — minimizing operational waste to lessen purchasing costs or reducing water and energy use for significant savings — others seem to have difficulty building out the proper road map to sustainability. Following are some straightforward steps to structure operations in the green direction.

Step 1: Build an effective organizational structure. Sustainability programs should be managed in a consistent and coherent manner by a corporate sustainability team. Plant-level initiatives can deliver positive results, but many organizations fail to take advantage of these beneficial strategies and apply them outside the four walls of a specific plant. When sustainability programs are organized by a corporate group, companies can foster a culture of collaboration across functional groups and locations and help all facilities access the necessary resources to reach sustainability success.

Step 2: Implement dedicated roles on the plant floor. Establishing roles and responsibilities across functional teams helps ensure that the corporate goals are well communicated to employees and that there is buy-in from all levels. It’s also important to establish cross-functional teams to ensure that best practices are shared among all groups or departments.

Step 3: Link sustainability metrics to employee compensation. It’s becoming more and more common for executive compensation to be tied to sustainability performance. However, this only addresses one level of the corporate hierarchy. The most successful programs foster both a top-down and a bottom-up approach toward a sustainability culture. Consider health and safety practices: When this emphasis is placed at the plant level and linked to compensation, the number of incidents quickly decreases. Compensation drives results. When goals are tied to financial benefits, workers are more likely to view sustainability programs as an integral part of operations, rather than just another marketing initiative.

Working toward cost savings

Once the structure and culture are handled, the focus can move to bottom-line results. A key here is sharing sustainability data and analytics across the organization to support decision-making. Connecting business processes to eliminate silos and apply analytics to newly expanded and contextualized data removes bottlenecks and empowers workers to make rapid and confident decisions.

Visibility into energy and emissions is one of the key strategies differentiating successful organizations. These companies are changing the meaning of visibility in their organizations, which means collecting data about key energy and emissions-related metrics automatically and presenting the data in the right form to the decision-makers. This enables quick and intelligent decisions. For example, in many geographies, energy prices fluctuate frequently. A production engineer or plant manager can use this information to schedule operations and achieve direct cost savings.

In fact, energy is a perfect example of how sustainable operations can affect the bottom line. Almost all manufacturers are aware of their labor or material costs, but not many have a true handle on their energy consumption. With the commoditization of sensors, controls and wireless connectivity, the opportunity to apply these technologies to energy management initiatives is clear. The data being collected needs to be controlled via a formal energy management or intelligence solution to provide executives with the ability to make connections between day-to-day tactical operations and strategic business goals.

Controls such as auto-shutdown of idle machines or auto-dimming lights can be put in place to further reduce energy use. This type of solution should be implemented via dashboards or event management tools, then tracked through reporting tools. The advanced analytics derived from these programs can give companies powerful insights into their energy use across the entire enterprise in order to keep pushing toward sustainability.

Automated data collection is the basis for building a real-time enterprise that can optimize sustainability performance. The ability to visualize and report on sustainability data is invaluable, as market and compliance requirements continue to evolve. Successful manufacturers have realized the importance of data-driven decision-making for sustainable operations and, as a result, are reaping the benefits.

Learn how you can turn your supply chain into a sustainable operation with ASCM's Enterprise Standards for Sustainability.

Rising Egg Prices and the Fragile Food Supply Chain

Fri, 31 Jan 2025 00:00:00 -0600

The egg market is cracking under pressure. A sharp increase in prices is forcing consumers to make tough choices at the grocery store and demonstrating the complex interplay of our food supply chains. This week in the news, the surge is prompting a closer look at the systems that bring food from farm to table.

USA Today reports that the cost of eggs is soaring by as much as 20%. Though inflation and demand are factors, they aren’t the primary culprits: The USDA cites a devastating bird flu outbreak that has torn through poultry flocks and seriously strained supply. The virus has affected a staggering 136 million birds. Per Forbes: As of January 24, there were eight bird flu outbreaks across California, Indiana, Missouri, North Carolina and Ohio. Sadly, much of the poultry infected with the virus has been slaughtered to avoid spreading the disease.

Grocers such as Publix and Whole Foods are reacting to the shortage by limiting the number of cartons each customer can buy. As such, Axios suggests that looking beyond the standard food store chain might be the best bet for consumers: “Local farm markets are more reliable, even outside the spring and summer peak laying season, and small operators can more easily protect their flocks. When supermarket eggs went for 99 cents a dozen, $7 farm eggs seemed like a splurge — and a barrier to entry. But now with comparable prices, there's even more incentive to shop local and support small farms.”

Those of us in the United States can take a lesson from our neighbors to the north, who have not been affected by the bird flu outbreak or the resultant high prices: “Canada’s supply management system — which regulates egg production, imports and prices — has helped keep the cost of eggs relatively stable,” reports Global News. Also, farms are smaller, and farmers generally share information with each other, a vital step in supply chain visibility. On the other hand, the U.S. system is more market-driven and “highly industrial,” which leads to volatile prices, Global News continues. In short, egg prices in Canada may be higher as a baseline, but they’re more predictable.

Planning is essential

Although instabilities are a part of life — and certainly part of supply chain — there are ways that you can be better prepared to handle them swiftly and efficiently. Planning for supply chain disruptions and managing inventory are crucial skills for any supply chain professional. By earning ASCM’s APICS Certified in Planning and Inventory Management (CPIM) designation, you’ll have the expertise to effectively prepare for and manage risk, plus use technology to streamline overall supply chain processes. CPIM content covers sales and operations planning, supply and demand, detailed schedules, inventory management, and much more. And industry professionals holding a CPIM earn up to 23% more than their peers.

You can save big when purchasing learning systems and exams together. An ASCM membership is also included! Get started today.

Supply Chain Needs More Procurement Professionals

Mon, 27 Jan 2025 00:00:00 -0600

Procurement specialists play a key role in supporting global supply chains. They serve as a critical link between suppliers and buyers and ensure that parts, inventory and products flow to where they are needed. Plus, organizations spend as much as two-thirds of their revenue on procurement, so even small improvements in this area can make a big difference.

However, organizations are struggling to find qualified talent to support this important area of supply chain. Deloitte's latest global supply chain survey found that more than 70% of chief procurement officers (CPOs) have trouble attracting the right talent. To fill these talent gaps, companies are turning to additional training in a variety of technical, technological and strategic skills.

To share additional insight, ASCM connected with Mike Bunge, vice president of global supply chain and operations at Hamilton Beach Brands.

ASCM: Procurement is so much more than just purchasing or sourcing. For our readers who are less familiar with this area of supply chain, what types of tasks typically fall under the procurement umbrella?

Bunge: If you look at the ASCM Dictionary, it defines procurement as “the business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.” That’s on the tactical side. You have to have these areas solid before you focus on the more mature, strategic side.

In my previous experience, we worked very hard to share as much appropriate information with our contract factories as possible. We took market inputs in the form of customer orders and forecasts and scrubbed them to create anticipated needs. These needs were shared with our contract factories to inform raw materials buys and labor planning. We also need seamless communication with our inventory locations — including places that hold cycle stock, work in process and raw materials — to effectively manage inventory. Communication is a sign of a mature procurement program, so the level of communication will vary from organization to organization.

Procurement also includes supplier auditing, scorecarding, rewards and recognition. We have formal contract factory audit programs that review sustainability, social responsibility, ethics, supply chain security compliance, quality management and operations management. These areas plus performance in terms of quality, cash, cost and service drive a scorecarding system, which is used as input for our annual awards program.

My team also handled knowledge management, global sourcing, material planning and inventory control. And procurement professionals take leadership in regulatory compliance for both products and the way we do business.

ASCM: The role of procurement has been gaining more recognition throughout the past few years. Why do you think that is?

Bunge: When I first started studying procurement, my mentors told me that organizations used to place their most difficult personalities in procurement. “Put the bulldog in procurement” was a widely held belief. As organizations, employee education and supply chain as a discipline matured, this changed. Information flow and collaboration became more valued than making enemies of your supply base.

Now it’s important to work with your supply base to establish a common vision. How can we expect our supply bases to support us if they don’t share the same vision as we do? As supply chains become more and more interwoven, the playing field is no longer organizations competing against other organizations but supply chains competing against other supply chains. Supply chain management as a whole has become more recognized for its strategic and tactical importance to organizations and communities. A structured, cohesive supply chain program is no longer optional, and procurement plays a big role in managing supplier relationships and ensuring information flow.

Companies also have realized that the strategy behind purchasing really adds value to an organization. It’s not just about saving three cents on a bearing that you buy a thousand of a year. Instead it’s about partnering with your supplier’s engineers to design an even better bearing that lasts twice as long, even if it costs a nickel more. It’s about value engineering. These challenges are in front of purchasing teams every day. Some companies have really recognized this value and brought procurement to the executive table with a chief procurement officer.

ASCM: Has the COVID-19 pandemic made a difference in the esteem of procurement?

Bunge: During the pandemic, many consumers gained a better understanding of what a supply chain is and how it works. I used to prepare an elevator speech to explain my role in procurement in supply chain. But now, most people understand what I do. I can talk about it in terms of toilet paper. If you walk down store aisles and there is toilet paper, a retail buyer played a role in making that happen. Product shortages have brought both the buying role and the bullwhip effect — which is very much alive and well — to the forefront.

My team also played a critical role in helping local hospitals acquire personal protective equipment (PPE). Our local hospitals were running out of PPE and were being put on allocation by their distributors. The problem was that distributors’ warehouses were running out of the gloves, masks, goggles and other types of PPE that were needed. However, there still was PPE out there further upstream in the supply chain. Our procurement team reached out to factories directly to order the PPE and had it sent to the United States via airplane to supply our hospitals. Procurement made that happen.

Editor's note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was April 7, 2021.

A Forward-Thinking Approach to Backorders

Mon, 27 Jan 2025 00:00:00 -0600

Unprecedented demand for a product can be a boon for any company — unless this demand pushes inventory into backorder territory. Backorders are a double-edged sword. When handled properly, a company earns upfront payment to keep its operations running and ensure demand for resupply. However, if things go wrong, order cancellations can mount, along with growing payment processing fees and lost customers.

The key to backorder success is robust logistics support. But building a backorder-friendly logistics strategy takes time. If you’re starting the process of accepting backorders during the fourth quarter of the year, when your industry segment is experiencing a spike, you’re going to end up with sleepless nights, upset customers and uncertain results. To handle whatever inventory challenges head your way, start planning now.

The difference between backorders and stockouts

While both terms relate to unavailable inventory, there's a key distinction between backorders and stockouts. A backorder occurs when a company accepts an order for a product that is not currently in stock but expects to receive it in the future, effectively allowing customers to purchase items that will be fulfilled later. This is a deliberate supply chain decision. In contrast, a stockout means a product is simply out of inventory with no immediate expectation of replenishment, making it unavailable for purchase. Unlike a backorder, a stockout implies a lost sales opportunity as the company cannot fulfill new orders until the item is restocked.

Backorders are a supply chain decision

Once your company’s leaders understand backorders and think it’s possible to handle them, the question becomes whether the company should accept them. The answer depends on your business model and partner capabilities. If your customers are willing to wait because they appreciate your company’s track record for customer service or unique, quality products, backorders can make a lot of sense. If your company provides luxury products, backorders may take away from the mystique that drives sales.

It is also critical to consider whether your suppliers can legitimately meet a demand spike. Can your manufacturers make smaller batches if you have a seasonal spike or need to bridge inventory gaps? Are their production facilities robust enough to add another run if your demand is sustained?

While you’re having these discussions with your suppliers, ask what they will need from you to respond to demand shifts as quickly as possible. You should be able to determine which one need the least amount of lead time and how you can reduce other suppliers’ lead times. The longer your supply chain is, the more tiers you will have to climb to understand how backorders will affect the network.

If your suppliers are less than enthused about your interest in allowing backorders, present them with data to support your choice. Your mission is to show that demand is likely to be sustained or that it will return to a more normal growth trajectory after a spike. Also, demonstrate how you can mitigate the bullwhip effect to assuage your suppliers’ concerns about being stuck with excess inventory in the event of an overcorrection.

Make a backorder plan

Once your whole supply chain team is on board, make a concrete backorder management plan. Include the following elements:

Data and inventory management: Set inventory levels to only need backorders when there is unprecedented demand. You don’t want a 2-3% increase in monthly orders to run you out of stock. Continually refine reorder levels based on current and historical data.
Clear backorder policies: Define the situations in which backorders will be allowed and how they will be handled. Do you order more stock plus additional buffer stock for every product that reaches backorder status? Or will you use your next planned resupply to fill backorders for some products?
Team-building and training: For the products that require an additional supply order, define who is responsible for making and confirming these extra orders. Choose if you want those orders to happen as soon as the final product is purchased, when it is packed and leaves the warehouse, or later. Even if you automate your resupplies, verify that each order has been received and confirm when you can expect resupply delivery.

If backorders are dynamic, you may want to appoint a different liaison for each supplier to ensure the best customer service. Also, define who is responsible for the additional warehouse work during backorder situations. This team will handle the volume when it arrives and stage it for order fulfillment. Train this group early and appoint team leads to control the flow.

Logistics best practices for backorder management

If a company is in a backorder situation, it likely will need to use products as soon as they arrive. Putaway only slows down the fulfillment process. Instead, warehouses should employ cross-docking. Cross-docking is an expedited fulfillment technique that uses a dedicated staging area and product locations to unload products from an inbound shipment, clear orders and get them outbound as soon as possible. To set up cross-docking, clear out physical space in your facility just for managing these products. Include temporary shelving, product-handling equipment and at least one mobile packing station so orders can be fulfilled efficiently.

Assign team members to each activity in the fulfillment process and ensure each is equipped with their own scanning, picking or packing equipment so they can always be productive. Warehouse managers will need to stay on top of dock schedules and be ready to pull together teams to unload product or get shipments moving if there’s a risk the fulfillment plan can run behind or if there’s a bottleneck at one door. Speed and accuracy are paramount.

In addition, warehouse managers will be more successful if they are well informed. As your company gathers inbound data, warehouse managers will know how many orders can be fulfilled with the products that will arrive that day and then prepare the orders for fulfillment. Once the managers figure out their fulfillment timing, they can schedule carrier pickups for the added volume and keep things moving.

How to choose the right tech support

Consistent, reliable communication between your multichannel sales and order management tools and the warehouse is also vital. Choose inventory management tools that are designed to support both backorders and cross-docking to effectively manage your warehouse and team. If you’re running multiple warehouses, verify that all elements are communicating clearly between locations. Line splitting across locations can significantly speed up operations, but it also can create a significant burden if the technology platforms aren’t in sync.

Always look for specific control systems to manage and determine actions within platforms. Backorder support within the software should be clear, with an easy option for setting a variety of backorder situations and rules for handling each. For example, the software could support a default backorder policy; an all-or-nothing policy that does not ship an order until all items are available; an up-to-X-shipments policy that breaks up an order into a given number of shipments to ship available items earlier and backordered items later; or a policy that ships items as they become available, even if that requires a higher number of shipments than normal.

Also, be aware of policy overlaps, such as how the system splits an order. Again, there may be cases when an order with a backordered item can be partially processed, allowing you to move it forward. Make sure that the appropriate chain of events to fulfill these orders in their entirety is clear and will not create confusion.

Once your logistics and inventory management technology systems and policies are in place, do a live test without notifying the warehouse. See how the fulfillment process runs, and identify any gaps or mistakes. Does the platform successfully work with bar code scanners for fulfilling partial orders? Is the process different for partial orders or when cross-docking? Does your team need to change its habits to manage the technical side of backorder management? Based on the test results, adjust the process before you start accepting backorders. The worst possible moment to try an untested system is when you need it at scale — and when poor execution can cost you significant revenue.

Call in logistics experts for help

Even with all of this internal planning and setup, a company may not be ready to handle backorders in all surge situations. To prepare to keep orders flowing during these times, consider enlisting the help of your logistics partners.

Warehouse experts might be able to help you avoid stockouts and backorders — or at least minimize their volume. They also work with carriers and routinely ship large volumes, which means they can help you secure space on a truck and avoid paying extra for the fast delivery you need. Third-party logistics (3PL) teams already are trained on advanced pick and pack techniques, including cross-docking. This means they can step in to help without first undergoing significant training.

Plus, if all partners are equipped with the right technology, it’s easier for everyone to quickly learn about your company’s business, preferences and platforms. Onboarding has become standardized, and the rise of application program interfaces and electronic data interchanges has made it easier for 3PL warehouse management tools to integrate with your order management, inventory management, enterprise resources planning and e-commerce software.

Keep customers in the loop

Logistics and fulfillment are a part of the customer service you deliver, especially if you’re banking on e-commerce orders for long-term revenue and sustainability. From the customer standpoint, this is managed via consistent communication. Use automated messages to reach out to customers when:

An ordered product is on backorder
You have a date when you expect to receive an inbound shipment
The order is filled and the customer is charged
The shipping process has begun and the tracking number is available
A product is delivered
A delay occurs during these steps
Any other changes arise.

The more you keep your customers in the loop, the more likely they’ll be to forgive a delay.

Now is the time to test your systems and plan for scale. Talk with your partners. Update your website to keep things clear for all stakeholders. Train your team and psyche them up for what very well may be just around the corner. ASCM's Supply Chain Maturity Assessment can get your organization started on the path to success. The free assessment identifies key capability deficiencies, and potential next steps to address deficient areas.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was June 30, 2021.

The Latest Cold Chain Scoop: AI Keeps Ice Cream Delicious

Fri, 24 Jan 2025 00:00:00 -0600

Many products — particularly those in the food, beverage and pharmaceutical sectors — are highly sensitive to thermal variations. Maintaining a consistent temperature from production to destination presents supply chain professionals with a complex challenge and numerous variables. This is when the vital role of the cold chain becomes crystal clear.

While you might assume summer heat poses the greatest risks for the cold chain, winter presents its own set of difficulties. As trucking company Ryder recently reported, severe cold can strain refrigeration units, often pushing them beyond their limits. Further, in freezing temperatures, diesel engines are less efficient; battery power wanes; and oil thickens, adding friction between moving parts and increasing the risk of operational failures. Of course, if and when a truck does break down, the products inside are at serious risk.

One business that feels these challenges acutely is Unilever, producer of ice cream brands including Ben & Jerry’s, Breyers, and ‎Magnum. The company's ice cream supply chain has 35 factories and 3 million freezers across 60 countries. That international presence — along with ice cream’s inherent seasonality — demands an agile supply chain: “In a European summer month like June, even a 1°C rise in temperature can substantially impact sales forecasts,” Unilever reports.

Fortunately, AI is proving to be a valuable resource for the company, as the tool enables professionals to analyze temperature input data points quickly and accurately. In fact, forecast accuracy has improved by 10% in Sweden since the adoption of AI-enabled freezers. The technology is also saving Unilever money on ingredients such as cocoa and vanilla, helping the business run more efficient production lines and minimizing waste.

“Using AI, we understand where to sell, how much we are going to sell, in which cabinet we are going to sell, and when and where to send our orders in the most efficient way,” says Elif Cakir, Unilever’s Ice Cream Supply Chain Long-Term Planning Lead.

For its part, Ryder is partnering with another ice cream giant, Turkey Hill, to replace the company’s current trucking fleet with more sustainable and reliable models that include built-in maintenance solutions. They’re also using predictive analytics to better plan routes, thereby avoiding areas heavily affected by winter weather.

It’s time for CHAINge

The struggles and triumphs of the cold chain are just some of the topics we’ll be discussing at CHAINge 2025, the brand-new iteration of ASCM’s annual supply chain event. CHAINge will bring innovation, education and collaboration to help supply chain professionals like you build truly efficient and sustainable networks. You’ll learn from industry experts about cutting-edge technology, pacesetting trends and so much more.

For the inside scoop on what we’re planning, check out this LinkedIn Live event, where I sat down with CHAINge Chair Bart A. De Muynck, supply chain thought leader and advisor; and Craig Jones, a CHAINge advisory council member and senior vice president at Levi Strauss & Co. Then, be sure to register for CHAINge Europe, 17-18 June in Brussels; and CHAINge North America, September 9-10 in Columbus, Ohio. Use promo code ELEVATE to save a cool €200/$200!

Four Strategies for Total Supply Chain Transparency

Wed, 22 Jan 2025 00:00:00 -0600

Supply chain traceability connects the stages of a product's journey as a thread tying together the intricate patterns of a tapestry. From raw material to destination, traceability ensures transparency, accountability and quality by enabling a company to identify potential issues, mitigate risks and improve overall supply chain performance.

In today's interconnected world, where consumers demand transparency and businesses face increasing scrutiny, embracing traceability is not merely a best practice; it's a fundamental requirement for long-term success. There are numerous benefits, but the most important are improved product safety and quality. By tracking the origin of materials and components, supply chain professionals can pinpoint the source of defects or contamination, preventing more widespread and damaging problems.

Secondly, traceability is essential for complying with regulatory requirements. Many industries, such as food and pharmaceuticals, have stringent regulations regarding product traceability. By implementing robust tracking systems, supply chain organizations can demonstrate compliance and avoid costly penalties.

In addition, traceability can significantly boost supply chain efficiency. By tracking the movement of goods, companies are able to pinpoint potential bottlenecks, optimize inventory levels and streamline logistics operations. This can lower costs, speed up delivery times and enhance customer satisfaction.

Finally, traceability is a powerful tool for improving a company’s brand reputation. By proving transparency and accountability, businesses build trust with partners, consumers and other key stakeholders. Plus, traceable products can be marketed as high-quality and ethically sourced, which can differentiate brands and attract a very loyal following.

How to achieve supply chain traceability

Consider the following strategies to advance your networks:

1. Apply the latest tech. Barcode and RFID technologies enable the tracking of products throughout the supply chain. Blockchain provides a secure and transparent way to record the history of a product, from its origin to its final destination. And the internet of things (IOT) uses various devices to collect data on key aspects of a product's journey, such as temperature, humidity and location.

2. Collaborate with suppliers and partners. Foster strong relationships with suppliers to ensure transparency and collaboration. Likewise, work with your suppliers to implement standardized data collection and sharing practices. Collaborate with logistics providers to track shipments and identify potential disruptions.

3. Implement robust data-management systems. It’s essential to establish a centralized system for collecting, storing and analyzing data. Then, be sure to prioritize data accuracy and consistency to enable accurate and effective tracking and analysis. Also be sure your people understand how to use data analytics to identify trends and patterns and improve decision-making.

4. Train and educate employees. Provide training to employees on traceability best practices and procedures. Empower them to use technology and data to improve traceability. And foster a culture of quality and compliance.

Tie it all together

Traceability is a crucial element of modern supply chain management. It is vital for building a resilient, responsible and ultimately more successful supply chain. Its benefits extend far beyond simple tracking, encompassing enhanced product safety and quality, regulatory compliance, improved efficiency, and a stronger brand reputation. By adopting the strategies outlined here, your supply chain organization will be well-positioned to create a transparent, accountable and value-driven ecosystem.

Download ASCM’s Top 10 Supply Chain Trends to learn more about how traceability and visibility can transform your supply chain operations.

As Wildfires Devastate, Supply Chains Can Aid Recovery

Fri, 17 Jan 2025 00:00:00 -0600

Natural disasters, from droughts and heatwaves to hurricanes and floods, are now ever-present in supply chain conversations. As worsening climate change wreaks havoc across the globe, the World Economic Forum estimates that 305.1 million people will require urgent humanitarian assistance in 2025. Still, no one expected the staggering destruction of the latest spate of wildfires in California.

We’ve watched in shock as the wildfires have spread, uncontrolled, over the past week. The stories and images of houses in flames and neighborhoods in ruins are truly devastating. As of this writing, the fires have displaced thousands of residents, caused an estimated $40 billion in damage and left at least 24 people dead. Some better news came Wednesday when red-flag warnings expired in most areas, including the largest Palisades Fire zone. However, the National Weather Service warns that gusty winds linger in the mountains, and Santa Anas will return early next week. Rich Thompson, an incident meteorologist, says cooler temperatures over the weekend may help firefighters make “some good headway” as they battle the blazes.

While the threat to human life is always our primary concern, supply chains are also facing wide-reaching repercussions “due to California’s role as a vital nexus for transportation, technology and industrial machinery,” per DC Velocity. Businesses depending on the region’s ports and highways should expect delays, shortages and higher costs as a result of power outages, evacuations, and closures of key routes and infrastructure.

Amazon is doing its part by leveraging its nearby Wildfire Relief Hub, which is “stocked with more than 6,000 essential items,” reports Chain Store Age. The company is also activating its significant logistics infrastructure and technology to deliver needed items to first responders, nonprofit partners and humanitarian relief agencies on the ground. Amazon formed the Hub after determining that, during an emergency, it can take days for necessary supplies to reach the disaster zone. “To quicken that timeframe, Amazon analyzed its data across four years of disaster support and formed a pre-positioning strategy,” Chain Store Age goes on to explain.

Other supply chain organizations are also helping in the relief efforts. “The California Trucking Association was sharing alerts about the potential for truck rollovers caused by the high winds” before the fires began, reports Trucking Dive. Later, the organization provided critical information about road closures and other safety alerts. “Harbor Trucking Association members are also mobilizing resources and supplies to help those who have been displaced by the disaster,” Trucking Dive continues. And, according to disaster support guidelines, they’re checking in before bringing supplies to ensure that the right resources are going to where they’re needed. The community has been generous in donating water, canned goods and other necessary supplies, and local organizations are fully stocked; but transporting these resources to the people who need them most requires expert logistical planning.

That’s where ALAN comes in. ASCM is proud to be an industry member of the American Logistics Aid Network, which has been on the ground supporting disaster workers and victims for years. The nonprofit organizes logistics-related relief resources, providing essential just-in-time knowledge and guidance for amazing results. If you would like to help, ALAN requests donations in the form of warehouse space, trucks, equipment and financial contributions. Or to volunteer your transportation or warehousing expertise locally, here is a list of urgent requests.

Gaining Clarity: The Power of Supply Chain Visibility

Tue, 14 Jan 2025 00:00:00 -0600

Much like a roadmap guides travelers along their journey, supply chain visibility illuminates the path of goods as they move from origin to destination. Without this clarity, businesses risk delays, inefficiencies and dissatisfied customers. But by shedding light on the supply chain, companies can uncover hidden opportunities, reduce waste and improve decision-making.

Supply chain visibility refers to the ability to track and monitor the flow of goods and information throughout a network; or, on a more local level, the ability to view important data within a facility no matter where in the facility that information is located. Both involve visibility into inventory levels, transportation routes, delivery times and more.

There are several benefits to real-time visibility into supply chain operations: making timelier, data-driven decisions; finding potential bottlenecks; optimizing inventory levels; and allocating resources more effectively. Plus, visibility helps mitigate disruptions, delays and quality issues. And by monitoring supply chain activities, businesses are better able to identify and address problems before they escalate. Moreover, visibility can streamline processes, reduce lead times and improve overall supply chain performance. By tracking the movement of goods, organizations can pinpoint inefficiencies and implement measures to improve operations.

Importantly, improved visibility also supports enhanced customer service. By tracking orders and shipments, businesses provide accurate delivery estimates and resolve customer inquiries promptly. This boosts customer satisfaction and loyalty. Additionally, stronger supplier relationships can be fostered through enhanced visibility. By sharing information and collaborating closely, businesses can improve supply chain performance and reduce costs.

Visibility strategies you can use today

To enhance visibility in your network, consider implementing the following strategies:

Maximize technology: Use GPS tracking, RFID and bar code scanning to monitor the movement of goods. Tap the power of the internet of things to collect data on goods throughout the various points in your supply chain, such as information about temperature, humidity and location. Implement blockchain technology to create a transparent and immutable record of transactions, ensuring the authenticity and traceability of products. Analyze large amounts of data to identify trends, patterns and potential issues.

Collaborate with partners: Foster strong relationships to improve communication and collaboration and use shared platforms to track shipments and share data with partners. These efforts can significantly advance supply chain processes and reduce costs for all involved.

Invest in data analytics capabilities: Use your data to find bottlenecks, improve forecasting and refine inventory levels. Employ predictive analytics to anticipate trends and potential disruptions. Also monitor key performance indicators to identify and address issues promptly.

Standardize data processes: Ensure data is collected and stored in a consistent format across your supply chain. And maintain high data quality to ensure accurate and reliable information.

Educate and train employees: Invest in training programs to educate your people about the importance of supply chain visibility. Empower employees to use technology and data to improve decision-making. Finally, encourage a culture of continuous improvement and innovation to find new and exciting ways to maximize the many advantages of supply chain visibility.

The value of supply chain visibility extends far beyond simply knowing the location of goods at a given moment. Rather, visibility is the cornerstone of a resilient, efficient and customer-centric supply chain. By embracing the strategies outlined here — leveraging technology, prioritizing collaboration, investing in data analytics, standardizing processes and empowering employees — businesses can transform their supply chains from opaque networks into transparent, data-driven engines of growth and success.

Download ASCM’s 2025 Top 10 Trends report to learn more about the power of visibility and traceability in your supply chain.

Is Procurement the Right Career Path for You?

Mon, 13 Jan 2025 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was 4/21/2021

The latest global supply chain survey conducted by Deloitte revealed a striking revelation. Over 70% of Chief Procurement Officers (CPOs) are grappling with attracting the right talent. These leaders unequivocally identified procurement expertise as the critical factor that sets them apart in the competitive talent landscape.

To learn more about this rewarding profession, check out ASCM’s new Supply Chain Procurement Certificate. The certificate program includes 18-20 hours of education and a comprehensive final exam, all available online.

And below, read ASCM’s interview with Mike Bunge, CPIM, CSCP, A.P.P., C.P.M., vice president, global supply chain & operations at Hamilton Beach. Bunge shares great advice about his own career path and why procurement is such an exciting field.

This is the third article in a three-part series. The other stories are available here and here.

ASCM: What led you to a career in supply chain and procurement?

Bunge: After earning an associate degree in physics, I landed a job in aerospace, but it was too introverted for me. I switched to finance, which I loved, and earned a bachelor’s degree and a master’s degree.

While working as a manufacturing accountant, my company went through an enterprise resources planning system install. I was responsible for the accounting and finance portion of the install, but I learned about the whole system. In the middle of the install, our plant purchasing manager retired, so I was named purchasing manager to complete the install. I realized that my purchasing skills so far were learned from shopping malls and grocery stores, so I knew more education was needed. I earned my Accredited Purchasing Practitioner (A.P.P.) and Certified Purchasing Manager (C.P.M.) designations through the Institute for Supply Management to learn more about purchasing. Because the supply chain profession also was growing at the time, I also turned to ASCM for education and earned the APICS Certified in Planning and Inventory Management (CPIM) and Certified Supply Chain Professional (CSCP) designations. I kept studying and ultimately earned eight different supply chain certifications and designations.

In my more than 30 years of professional experience, I’ve had many opportunities to change and grow – both personally and professionally. I currently work at Hamilton Beach Brands, where I am vice president global supply chain & operations.

ASCM: In previous articles, you talked about why procurement is an important strategic function within a company. But why do you think it is a fun supply chain job?

Bunge: I’m one of the luckiest people on this planet to have the career I do. I’ve had amazing opportunities to stay in the learning curve for most of my career. It’s such a cool feeling to look forward to completing the next assignment, sharing that assignment with others, and adding value to the organization so we can win new customers or orders or just do better than our competitors.

Procurement specialists work cross-functionally with all areas of an organization. We need to work with health and safety, engineering, legal, finance, human resources, sales, marketing, and more. We interface with the entire organization and have a chance to be a part of what is going on at all levels of the organization and in all areas.

Plus, you get to work with outside organizations and see how different people do work differently. You get to be the eyes and ears of your company, benchmark your company’s practices against other company’s practices, and bring back improvement ideas — even for areas outside of procurement. Most people inside your company won’t have the same opportunity. This kind of learning opportunity makes the job fun.

My firm has allowed me to go beyond the traditional procurement role and participate in our challenge to continue to innovate in a mature product market. For example, we became the first company to offer antimicrobial dinnerware, which can stop the growth and reproduction of bacteria like E. coli and Staphylococcus aureus. It was a fun and rewarding opportunity to play a leadership role in this product development.

A procurement role is for someone who is a little bit extroverted, likes learning new things and likes engaging in new stuff. It can be a very, very fun occupation.

ASCM: What advice do you have for anyone who wants to work in procurement?

Bunge: Education is key and can still set you apart from peers — or at least make sure you are properly prepared to compete with your peers. Hard work alone will not lead to success; there are strategic and tactical sides of procurement, but also a psychological side. This means there are many different skills to master.

Education can start with university programs and continue through certifications and specialized study. It also helps to study negotiation, foreign languages and the types of materials your company uses.

To help myself keep learning, I’ve never said no when my company asked me to change roles, relocate, take on new responsibilities or just refocus. Even if I was not completely qualified for a role, I would make certain that I studied to be completely qualified quickly. For example, I was transferred to China as part of a greenfield build and became my company’s Asia Pacific supply chain manager. So that I could communicate better, I did an immersion program in Mandarin just before the relocation. I also decided to live in the small town near the factory rather than in the Beijing community where most other expats lived. I was about one of six foreigners living in this small town of 4 million people, so I really became immersed in the local language and culture.

In addition, our China operations were relatively small, so I had a very broad influence there. Because I was a native English speaker, I had opportunities to go outside of the supply chain function to help with sales, marketing and legal. It was an amazing learning experience.

Remember, procurement is a wide field, and it keeps growing. Learn and keep learning in order to grow with it.

Grow your procurement knowledge and skills with the ASCM Supply Chain Procurement Certificate.

Beyond Reduce, Reuse, Recycle: Innovations in Sustainable Farming

Fri, 10 Jan 2025 00:00:00 -0600

Here at ASCM, we’re passionate about supporting and advancing the circular supply chain, a system of reusing and regenerating materials and products in a more sustainable way. The goal is to dispense with the take-make-waste structure of the linear supply chain and refocus on minimizing waste and maximizing the use of resources — and potential profits. Regenerative agriculture has a similar aim for the biodiversity and nutrition of soil, and it’s a burgeoning trend in sustainability.

Regenerative agriculture is a “farming and grazing practice that… reverses climate change by rebuilding soil organic matter and restoring degraded soil biodiversity,” defines the nonprofit Regeneration International. This farming method results in a reduction in carbon, the creation of drought-resistant soil, the restoration of grasslands, and many other nutritional benefits, but it can also improve crop yields and revitalize local economies, the organization goes on to explain. The benefits — and the goals — depend on the farm, crop and geography. “The PepsiCo regenerative program draws on site-appropriate use of reduced tillage, cover crops, rotational diversity and livestock integration,” Forbes reports, whereas “the Maker’s Mark small grains program has an emphasis on how soil health and nutrient cycling could impact regional water quality as well as carbon footprint,” and Motts’s apple program attempts to increase “native pollinator species.”

KIND, a subsidiary of Mars Inc. that’s known for its fruit-and-nut bars, is looking to its almond suppliers to ensure farm practices are bee-friendly and “employ regenerative agriculture practices on a mass-balance basis,” Trellis reports. Sustainability also necessitates water conservation: Almonds, which are primarily grown in drought-plagued California, are infamous for the volume of water they require to grow in— 3.2 gallons per nut, in fact. Though other nuts require similar amounts of water, the growing conditions aren’t usually as dire. KIND and its partner ofi, a food ingredient supplier, have already reduced water use by 30% “by transitioning from aboveground to subsurface irrigation,” without impacting production, Trellis continues. The new irrigation system “minimizes water use, eliminates surface water evaporation, lowers fuel consumption by irrigation pumps and reduces disease and weed growth.” It’s also expensive, costing twice as much as a traditional setup, but reduces long-term energy costs.

KIND is hoping other companies will follow its lead, because most almond farms are relatively small and family-owned, so the farmers are taking a risk by making big changes to their existing processes. But they’re also prepared to embrace transformation: “Farmers are already feeling the effects of more extreme weather events and are motivated to evaluate regenerative farming as a way to protect their farm income and their ability to pass along a viable business to the next generation,” notes Forbes. Supporting the environment and helping suppliers build resilience for the future is just the kind of initiative we can get behind.

Looking to a brighter future

As supply chain professionals, we must continually build our knowledge to keep pace with the changing global economy. One way to start right away is by enrolling in ASCM’s new credential, Certified in Transformation for Supply Chain (CTSC). With this innovative program, you’ll learn to lead an end-to-end supply chain transformation, leveraging the ASCM Standards for Sustainability — designed to empower organizations to reach their goals, improve results and be more competitive in today’s marketplace.

And now is a great time to sign up for this or any other credential or certificate program that will lead you on a new path to career advancement: For a limited time, we’re offering 15% off APICS certification learning systems and bundles and all certificate products. Just use code SAVE2025, and sign up today!

Is Your Supply Chain Ready for 2025?

Mon, 06 Jan 2025 00:00:00 -0600

The supply chain landscape is evolving rapidly, driven by exciting new tech, global trade dynamics, shifting consumer expectations and more. In 2025, organizations will need to navigate this complex interplay, embrace innovation, build resilience, ensure people are well-trained, and prioritize sustainability.

To help you prepare and maximize the opportunities, read Top 10 Supply Chain Trends 2025, which was carefully curated by ASCM’s Innovation and Strategy Sensing Subcommittee. You’ll find essential insights into the most important issues shaping the future of supply chain, plus key applications and informative industry spotlights. Check out the top three trends here, then be sure to download the full report to explore and learn from them all.

#1. Artificial intelligence (AI) is revolutionizing supply chain operations, from predictive analytics to robotic automation. AI-powered tools can forecast demand with greater accuracy, help perfect inventory levels and streamline logistics. By analyzing vast amounts of data, AI also identifies patterns, trends and anomalies to help supply chain organizations make more informed decisions.

For instance, some companies are using AI-powered predictive analytics to forecast demand fluctuations and adjust production schedules and inventory levels. This reduces the risk of stockouts and overstocks, improving overall supply chain efficiency. Furthermore, AI-driven automation, such as robotic process automation and machine learning, automate repetitive tasks, reduce human error and boost productivity.

#2. Global trade dynamics and geopolitical policies continue to shape the supply chain landscape. Geopolitical tensions, trade wars and economic fluctuations disrupt supply chains, increase costs and create uncertainty. To mitigate these risks, businesses must adopt a proactive approach to supply chain management.

Diversifying supply sources, building strong relationships with suppliers and developing robust contingency plans are crucial strategies to enhance supply chain resilience. Additionally, businesses can use advanced technologies, such as blockchain, to improve transparency and traceability in global supply chains.

#3. Big data and advanced analytics offer critical insights into supply chain performance. The vast amount of data generated by sensors, manufacturing equipment, enterprise software systems and more presents a significant opportunity for businesses to gain a competitive advantage. By analyzing vast amounts of data, businesses are improving operations, making more informed decisions, and driving innovation and efficiency.

For example, by analyzing historical data on sales, demand and supply chain performance, organizations identify critical patterns and trends. This information can be used to make more accurate forecasts, refine inventory levels and improve production planning. Additionally, data analytics help find bottlenecks and inefficiencies in the supply chain, enabling businesses to take corrective action.

Reveal all 10 trends

Getting ahead of these trends enables supply chain professionals to proactively shape a successful, sustainable future. Ready to unlock the full potential of your network? Download Top 10 Supply Chain Trends 2025 to discover valuable applications and implementable strategies for each of the latest topics shaping the supply chain industry. With a deep understanding of what’s to come, you’ll be equipped to position your organization for ongoing resilience and success.

Watch our recent livestream Q&A on the top 10 trends for supply chain for 2025.

Procurement Career Path: Why it’s a Good Choice

Mon, 06 Jan 2025 00:00:00 -0600

Procurement career overview

Procurement jobs cover a broad spectrum of tasks and responsibilities within the supply chain related to buying a company’s products and services. This includes placing orders, negotiating with suppliers, managing contracts, managing risk, and cultivating relationships with suppliers and customers.

There is considerable potential to advance along a procurement career path. Entry-level positions typically start at procurement assistant and progress to procurement manager and director. It’s also a great route to a chief procurement officer role.

Here, we’ll discuss how to begin your career in procurement, the skillsets required, expected salary ranges and forecasted growth patterns within the industry.

Why choose procurement as your career?

A job in procurement can lead to a very rewarding career, both financially and personally, for several reasons:

Potential for advancement: There is a stepped path to increasing responsibility within the procurement career space, providing you with many opportunities for advancement and increased salary.

Job security: Nearly all businesses rely on a supply chain to support the sales of their products. That puts the procurement job sector in very high demand.

Competitive salary: Because demand is high and advancement potential is excellent, procurement jobs can frequently offer competitive salaries. Additionally, you will be paid more than your peers if you earn a relevant certificate or certification. For more information on procurement education programs, visit ascm.org/procurement-certificate-program (include ASCM link)

Travel opportunities: If you like to travel, procurement is a great career choice. Chances are, you’ll often need to travel to meet and negotiate with suppliers all over the globe.

On-the-job skill development: While in a procurement role, you’ll have opportunities to learn new skills and improve your negotiating and strategic thinking, making you more competitive and successful.

Impactful work: By working in procurement, you’ll be making a positive impact on your organization by driving cost savings, mitigating risk and delivering value. You can also do your part to help protect the planet by sourcing sustainable goods and services.

How to start a career in procurement

Whichever professional path you choose, your first step should be to acquire the proper educational foundation, starting with a bachelor’s degree. But your learning shouldn’t stop there: Ongoing training will help you stay competitive and further your career. Equally important to what you know is who you know. Savy networking goes a long way toward helping you advance and can give you an advantage over someone equally qualified. Following are tips for taking these key steps and getting started in your procurement career:

Education

Earning a bachelor’s degree in a discipline such as economics, engineering, business administration or supply chain management will provide you with valuable foundational knowledge to start your professional procurement journey. If you’re interested in starting at a more senior-level position, earning a master’s degree in a finance specialty or related field will take you a step further.

In addition to earning your degrees, gaining industry-specific knowledge through accredited training programs and certificates will show potential employers your commitment to your procurement career and help you secure a higher salary. In fact, individuals with at least one APICS certification (CPIM, CSCP, CLTD, or CTSC) from ASCM earn a median salary 18% higher than their non-certified colleagues.

Securing your first role

Securing your first professional role in procurement requires a focused strategy to align your skills with industry demands. If you have no on-the-job experience, using your education and certification credentials to showcase your potential to employers is important.

While you’ll most likely need to start out in an entry-level position, use this opportunity to learn as much as you can about the industry, sharpen your skill set and make professional connections that will help you propel your career forward.

Networking

People sometimes underestimate the importance of networking. Joining a global membership organization like the Association for Supply Chain Management (ASCM) (LINK) will help you connect with industry professionals who can mentor you and help guide you in your career journey. As an ASCM member, you’ll enjoy discounts on certification programs, professional development and industry events, as well as exclusive access to leading industry insight and research. Organizations like ASCM provide a supportive community where you’ll have the tools and channels you need to drive your career forward.

Upskilling

As with any career, sharpening your skillset through continuous learning is crucial for remaining competitive and advancing within the industry. You can start by identifying the path you’d like to take on your career journey and what higher-level roles you’d like to pursue. Then, do your research to learn what specific skills are needed to be hired and succeed in these roles.

For procurement, this will involve strategic sourcing, data analytics and supplier relationship management. You may also benefit from sharpening your digital skills in procurement platforms, such as ERP and e-procurement systems. Pursuing advanced programs such as the Supply Chain Procurement Certificate and becoming a Certified Supply Chain Professional (CSCP) will provide you with accredited in-depth training and demonstrate your commitment to professional growth.

Reference source: Indeed .

Procurement career forecast

If you’re planning on a career in procurement, you’ll be happy to know the future looks bright. According to the U.S. Bureau of Labor Statistics, jobs within the procurement industry, such as purchasing managers and buyers, are projected to grow 7% from 2023 to 2033, faster than the average for all occupations.

Looking closely at job growth potential, roughly 61,000 openings in these positions are projected each year, on average, over the decade. Many of these openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force due to retirement or another life change.

Reference source: U.S. Bureau of Labor Statistics.

Procurement career salary averages

According to the ASCM 2024 Supply Chain Salary and Career Report, general salaries in the United States continued their upward trajectory, with a 4% increase year-over-year. This impressive growth pushed the median compensation for supply chain professionals past a major milestone, reaching a record-breaking $103,000.

Positions within the procurement specialty offer a wide range of salaries. A project-based role such as a full-time procurement specialist can pay anywhere from $30.12 to $36.80 per hour, while higher-level roles such as director of purchasing and contracting can pay anywhere from $230,000 to $250,000 per year.

Earning an ASCM certificate such as the Supply Chain Procurement Certificate not only sharpens your skill set and proves your career dedication to potential employers but can also boost your salary. Statistics show professionals with a certificate such as this one from ASCM can enjoy a salary increase of up to 20% compared to those without.

Procurement roles to explore

There are many potential positions to pursue within the supply chain procurement field. Here is a breakdown of some roles to explore categorized by career level, the responsibilities they cover and career growth advantages they offer:

Entry level

Procurement analyst:
- Responsibilities – Conduct data analysis on cost reduction, supplier performance and purchasing trends to support procurement strategies
- Benefits – Build your foundational analytical skills in supply chain management
Buyer:
- Responsibilities – Manage purchasing planning and activities, negotiate with suppliers and ensure timely delivery of goods
- Benefits – Provide hands-on experience in building supplier relationships and negotiation
Procurement assistant:
- Responsibilities – Provide administrative support for procurement processes, such as tracking orders, handline documentation and coordinating with suppliers
- Benefits – Teach the foundations of procurement basics and provide organizational experience

Procurement specialist:
- Responsibilities – Assist with sourcing, vendor management and contract negotiation to help streamline purchasing processes
- Benefits – Develop essential procurement knowledge and specialized skills in supplier engagement
- Learn more about procurement specialist roles

Midlevel

Category manager:
- Responsibilities – Oversee purchasing for a specific product category, strategize supplier relationships and manage budgets to optimize category performance
- Benefits – Builds expertise in category-specific procurement and strategy planning

Senior buyer:
- Responsibilities – Lead high-level or complex purchasing projects, mentor junior buyers and improve procurement efficiency across product lines
- Benefits – Deepen negotiation and strategic sourcing skills and provide opportunities for leadership roles

Procurement manager:
- Responsibilities – Manage procurement teams, define purchasing policies and drive cost-savings initiatives to achieve company goals
- Benefits – Offer leadership experience and opportunities to shape procurement strategies

Strategic Sourcing Manager:
- Responsibilities – Develop and implement sourcing strategies for critical products and services and ensure alignment with the organizational objectives
- Benefits – Provide experience in strategic planning and cross-functional collaboration

Senior

Director of procurement:
- Responsibilities – Lead the procurement department, set high-level procurement strategies and ensure policies support the overall company objectives
- Benefits – Provide executive oversight experience and opportunities to improve corporate decision-making

Chief procurement officer:
- Responsibilities – Head the procurement function, aligning procurement goals with organizational strategy while driving innovation in the supply chain process
- Benefits – Offer the highest leadership role in procurement with significant influence over sustainability and profitability

Industries that employ procurement professionals

The procurement function serves a necessary and vital role across many industries because it ensures companies acquire the goods and services they need at the best possible price, quality and delivery time. Following are a few industries that rely on the procurement function for daily operations:

Manufacturing: Procurement professionals play a critical role in sourcing raw materials, components and equipment needed for production. They work to secure reliable suppliers and negotiate contracts that balance cost with quality to prevent delays, reduce waste and improve profitability across the supply chain.
Retail and e-commerce: Procurement teams are responsible for building relationships with suppliers, negotiating favorable terms and ensuring a steady inventory flow. They monitor market trends and demand patterns and adjust purchasing strategies accordingly to help businesses stay competitive and meet customer expectations.
Health care and pharmaceuticals: Procurement professionals handle the acquisition of medical devices, drugs and other supplies critical for patient care. They must navigate stringent regulatory requirements and quality standards to ensure all products meet safety guidelines while maintaining essential stock levels to continuously support patient care and public health needs.
Technology and electronics: Procurement is essential for sourcing complex, often high-value components such as semiconductors. These professionals maintain supplier relationships and anticipate global supply chain challenges to keep production on track. Procurement teams must also keep pace with rapid technological advancements and look for opportunities to introduce innovative or cost-saving materials.

Procurement career skillsets

Because the procurement field covers a wide range of responsibilities and tasks, procurement professionals must possess a diverse set of skills to navigate complex supply chains, manage costs and drive innovation. Here are the top 10 skills every professional should master to excel in a procurement role:

Strategic sourcing: Moving beyond basic purchasing, strategic sourcing involves identifying and developing long-term relationships with key suppliers to optimize overall supply chain efficiency and cost-effectiveness.
Demand planning and forecasting: Accurately predicting future product demand allows for efficient inventory management, production planning and resource allocation. This skill requires understanding market trends, customer behavior and internal sales forecasts.
Inventory management: Striking the right balance between holding too much or too little inventory is crucial for cost control and customer satisfaction. This involves understanding inventory carrying costs, lead times and implementing effective inventory control strategies.
Supply chain visibility and analytics: In today's complex global supply chains, having real-time visibility of inventory levels, order status and potential disruptions is essential. Analyzing data allows for proactive decision-making and risk mitigation.
Logistics and transportation management: Optimizing the movement of goods from supplier to customer is critical for timely delivery and cost control. This includes understanding different transportation modes, freight costs and implementing efficient logistics strategies.
Project management: Many supply chain initiatives involve complex projects, requiring strong project management skills to ensure on-time and on-budget completion. This involves planning, scheduling, resource allocation and risk management.
Risk management and resilience: Identifying and mitigating potential disruptions in the supply chain is key to ensuring business continuity. This requires understanding various risks, developing contingency plans and continuously improving supply chain resilience.
Global trade management: Understanding international trade regulations, customs procedures and incoterms is essential for businesses operating in a globalized environment. This facilitates efficient cross-border transactions and helps avoid delays or compliance issues.
Sustainability integration: Integrating sustainability principles into supply chain practices is becoming increasingly important. This involves ethical sourcing; minimizing environmental impact; and aligning with environmental, social and governance standards.
Leadership and communication: Effective leadership and communication are essential for building strong relationships with internal and external stakeholders, including suppliers, customers and colleagues. This ensures collaboration, information flow and smooth supply chain operations.

ASCM career development resources

ASCM is the global leader in supply chain organizational transformation, innovation and leadership. By joining ASCM, you’ll enjoy reduced pricing on APICS certification courses, professional development and events, as well as exclusive access to industry-leading insights and research. You’ll be part of an online network of impassioned supply chain professionals ready to help you advance your career path. For more information, visit ascm.org/membership-community/career-resources/.

Manufacturing Labor Shortage Threatens U.S. Nearshoring Efforts

Fri, 03 Jan 2025 00:00:00 -0600

The U.S. economy has lately experienced the consequences of overreliance on outsourced goods and labor, especially in Asia. COVID-related lockdowns in China caused shipping delays into 2022; later that year, widespread protests again created disruption. A catastrophic earthquake in Taiwan temporarily halted production of critical semiconductors in 2024. It’s no wonder that many companies are curious about investing in nearshoring production, hoping to prevent disruptions and reduce supply chain shocks. Unfortunately, the workforce may not have the muscle to support new factories in the U.S.

“As companies increasingly source more of their parts and products from the U.S.” manufacturers and plant owners “are struggling to find skilled workers to put a Made in America label on their goods,” reports The Wall Street Journal. During most of 2024, the difference between job openings in manufacturing and available workers has been a whopping 100,000. For durable goods manufacturing, the gap is even more acute, notes the U.S. Chamber of Commerce: as many as “622,000 total manufacturing job openings [are] yet to be filled.” Meanwhile, companies are continuing to invest heavily in North American suppliers and plants for everything from furniture to electric vehicles, “boosted by U.S. government grants.” When those facilities open, the need for workers will be even higher.

Meanwhile, the tariffs threatened by President-elect Trump — to the tune of 25% for Canada and Mexico and an additional 10% for China — may exacerbate the problem, reports Inc. “73 percent of U.S. employers… have or are preparing to return production and supply chains to the U.S. and regional countries in response to Trump’s tariff plans [suggesting that] the nation’s factory labor shortage is likely to get worse in the next few years.”

Baby Boomers, who retired en masse during the pandemic, are one explanation for the shortage of skilled employees in factory jobs; image is another problem: “Teenagers think of jobs in plants as dirty and unskilled, even though factories have become cleaner and more reliant on skilled workers operating high-tech machinery,” WSJ goes on to explain. Plus, young people are increasingly interested in hybrid or work-from home office positions that were popularized during the pandemic, and some “youthful candidates balk at the rotating schedules and longer hours of shift work,” notes Inc. The cultural emphasis on four-year college degrees may also put some young people off from factory jobs, under the incorrect assumption that they don’t pay enough to support a middle-class lifestyle. As a response, some manufacturing groups are creating paid programs to teach high school students in the trades, Inc. continues. But attitudes must change quickly for these plans to gain widespread traction.

Education for every supply chain professional

We don’t know what the future holds, but our supply chains will need to be resilient to meet the moment. Whether you’re interested in breaking into supply chain, recruiting potential professionals or are already a seasoned expert in the industry, education is crucial for ensuring that our supply chains keep moving smoothly. That’s why ASCM’s Supply Chain Resilience Certificate is the right fit, no matter the stage in the supply chain career journey. With this program, you’ll be better able to manage risk in supply chain, make data-driven decisions and prepare for potential disruptions using strategic planning. And for a limited time, you can save 15% on APICS certification learning systems and bundles and all certificate products with code SAVE2025. Sign up now!

A Time of Progress and Promise

Fri, 27 Dec 2024 00:00:00 -0600

As 2024 draws to a close, I find myself reflecting on a year of both significant progress and evolving challenges within our global supply chains. While we continued to navigate the ever-present threat of disruption, we also witnessed remarkable resilience and innovation across the industry. As always, it was your commitment to excellence, innovation and collaboration that was instrumental in overcoming complexities and driving us forward.

Of note this year, we saw the continued surge of artificial intelligence, transforming how we plan, execute and optimize supply chains. From predictive analytics to robotic process automation, AI is empowering businesses to make data-driven decisions, improve efficiency and enhance customer satisfaction.

Of course, right alongside these fascinating advancements is the critical importance of human capital. The supply chain workforce of the future requires a diverse skillset, encompassing digital literacy, critical thinking and adaptability. With this in mind, ASCM remains dedicated to supporting your professional development through our industry-leading educational programs, research, content and events. So, as we welcome 2025, I encourage you to embrace the opportunities that lie ahead by prioritizing lifelong learning, innovation and collaboration to create a more resilient future for supply chains everywhere.

From all of us at ASCM, wishing you and your loved ones a joyous holiday season and a New Year that’s filled with opportunities for connection, meaning and prosperity.

Beyond Free Returns: New Solutions for the Post-Holiday Crunch

Fri, 20 Dec 2024 00:00:00 -0600

At this late point in the season, most people who celebrate a December holiday have their shopping all wrapped up (pun intended). That’s good, because opportunities to purchase gifts online may have passed, leaving consumers with in-person retail. Interestingly, some sellers have doubled down on using their physical stores as fulfillment centers — something that gained popularity during the pandemic lockdowns — and are refining the process to be more efficient than ever.

Bloomingdale’s “omnichannel technology” offers customers the opportunity to check local store inventory, potentially saving them a lot of time and hassle. “The real-time inventory data platform allows customers to locate, purchase and receive products on the same day while browsing brand websites,” reports Retail Systems. Essentially, this practice cuts out the typical intermediary — in this case, the warehouse — to meet consumer needs and give them more control more quickly. Big-box retailers including Home Depot, Best Buy and Walmart have launched similar systems in the past, leveraging AI to power “real-time inventory management and live tracking systems for improved home delivery services and customer experience,” the story continues, making it faster and easier to buy that perfect gift.

Unfortunately, sometimes the gift isn’t quite as perfect as we hope. In fact, the National Retail Federation expects a returns rate of 17% this year, totaling a whopping $890 billion — up from 15% in 2023. The greater number of returns is a consequence of more online shopping, with an increase of 8.4% over last year, according to Modern Retail. And those returns are expensive, costing about $30 for every $100 spent, stemming from factors such as “discounting, transportation and the manual labor required to process and inspect returned items.” Historically, companies have been absorbing the costs of returns to gain loyalty with customers, but those days may be coming to a close.

“Reverse logistics companies like Happy Returns are preparing for an onslaught of online returns,” Modern Retail continues. Happy Returns, now owned by UPS, aims to lower costs for its partnering companies by “relying on a combination of robotics and automation, data-driven forecasting and user-focused design to handle the surges in returns volume during the peak shopping season” in exchange for a monthly fee. The service also allows people to ship back their unwanted gifts without a box or a return shipping label, improving the customer experience and reducing environmental impact.

And the environmental impact of high-volume of returns is significant. Per The Atlantic: “Many retailers determine that the cost of vetting and repackaging merchandise is too high to be worth it” and throw billions of pounds of returned products directly in the trash. Alternatively, about 60% of retailers choose to issue refunds for cheap goods but tell customers not to worry about sending them back. About 56% of retailers offer box-less, label-less returns in-store or at third-party locations, notes Supply & Demand Chain Executive. Other options include “diverting like-new goods to internal or external recommerce channels (54%) and consolidated shipping for returns (50%). And there’s always doing away with free returns entirely. According to The Atlantic, “Some stores, such as REI, JCPenney and DSW, are putting the onus on online shoppers by way of return or shipping fees.”

Education and collaboration for better supply chains

The shipping-returns quandary isn’t the only supply chain issue that requires innovation to meet the moment. That’s why ASCM is thrilled to announce that our annual conferences, formerly ASCM CONNECT, are evolving into something extraordinary: CHAINge! This brand-new conference experience is designed to equip supply chain professionals with the tools, education, insights and connections to shape the future of our industry. Register now for Brussels, Belgium, June 17-18; and Columbus, Ohio, September 9-10. Together, we can be the CHAINge-makers for a stronger, more resilient global supply chain community.

ASCM's Top 10 Supply Chain Trends — Your Essential Guide to 2025

Fri, 13 Dec 2024 00:00:00 -0600

Our world is changing faster than ever, and supply chain is certainly no exception. To stay ahead of the curve, it's crucial to understand the latest trends shaping the industry. Whether you're a business leader, a tech enthusiast or simply curious about the future, ASCM’s Top 10 Supply Chain Trends for 2025 is an essential list of priorities that will drive innovation and results.

It should come as no surprise that artificial intelligence (AI) makes a prominent appearance on our list. From chatbots to machine learning, neural networks to augmented reality, AI powers so much of the technology that is helping our supply chains thrive in the ever-connected marketplace. This past year alone, we’ve explored the ways AI is revolutionizing food manufacturing and consumer-packaged goods, online and in-person retail clothes shopping, medical forecasting — and that’s just the beginning. AI can be employed for optimized transportation routes, prediction of demand fluctuations, expert packaging and assembly, and computer vision systems that identify and help eliminate product defects.

Cybersecurity is another key trend: As supply chain organizations keep creating and collecting more and more data, hackers are getting smarter. Many of our trends are quite clearly interconnected; for example, AI is enabling some attackers to produce system vulnerabilities including data poisoning, model manipulation and adversarial attacks such as AI-driven phishing, the WE Forum explains. And both the trends of AI and cybersecurity underscore how much supply chain is rapidly changing. To meet the moment, the people in supply chain need to adapt, too. That’s why workforce evolution is another key theme to watch for 2025. Our industry has faced a growing talent shortage for years, and the importance of technological know-how is only increasing. But the issue won’t be solved simply by more hiring, but by upskilling and reskilling the workers who are already invested in the organization. Building talent ensures people are equipped to handle the demands of an increasingly automated and digital supply chain — and boosts the resilience of the supply chain itself.

There’s so much more to learn about next year’s trends; and this year's report is bigger and better than ever before: Our editorial team has created three new content sections for each of the 10 trends:

Supply chain applications: Practical ways the trends are advancing supply chain management right now
Industry spotlights: Specific cases of each trend in action within 10 different key industries
How to prepare: Actionable advice on how to prepare for and maximize each trend

Download the report today and start preparing for the future of supply chain. Then, watch the recording of our recent LinkedIn Live Event, in which members of the ASCM ISC Sensing Subcommittee get into the trends in much more detail. There’s a lot to look forward to next year, and I’m thrilled to share these resources with you as you plan for your supply chain’s future.

Advance Warehousing Operations with Automation and the IOT

Wed, 11 Dec 2024 00:00:00 -0600

The landscape of warehouse operations is undergoing a significant transformation, largely due to the adoption of intralogistics technologies driven by autonomous tools and the internet of things (IOT). In a period marked by persistent labor shortages and escalating e-commerce demands, these innovative solutions are revolutionizing how goods are moved, stored and retrieved within warehouses, leading to enhanced efficiency, productivity and sustainability while addressing critical workforce challenges.

What is intralogistics in supply chain management?

Intralogistics is a critical component of supply chain management, as it directly affects the efficiency and effectiveness of warehouse operations. It refers to the internal logistics processes within a warehouse, including the planning, control and optimization of material flow — from receiving and storing to picking, packing and shipping. Intralogistics relies on innovative technologies to streamline operations, improve efficiency and reduce costs.

Traditionally, warehouse operations have relied heavily on manual labor and outdated technology. Companies using this approach often struggle to meet the demands of modern supply chains, which require speed, accuracy and flexibility. Autonomous and IOT-based intralogistics systems offer a solution by automating repetitive tasks, improving workflows and improving data-driven decision-making.

The benefits of integrating automation and the IOT

One of the key benefits of these technologies is increased efficiency. Autonomous mobile robots (AMRs) can navigate warehouse environments autonomously, transporting goods to various locations without human intervention. This reduces labor costs, minimizes errors, and improves overall productivity. Automated storage and retrieval systems (AS/RS) optimize storage and retrieval processes, maximizing space and minimizing picking times.

Beyond AMRs and AS/RS, the integration of AI enables robots to manage a more diverse array of tasks, adapting to evolving warehouse environments in real-time. This includes advancements in collaborative robots that work seamlessly alongside human workers on tasks requiring both precision and human dexterity. Amazon's Kiva robots, now known as Amazon Robotics, are a prime example of how autonomous technology can revolutionize warehouse operations. These robots transport shelves of products to workers, significantly reducing the time it takes to fulfill orders.

IOT devices enable real-time monitoring and control of warehouse operations. By collecting and analyzing data from sensors and other devices, businesses can identify bottlenecks, optimize resource allocation and make data-driven decisions. For example, IOT-enabled inventory management systems can track product movement in real-time, preventing stockouts and overstock situations. Furthermore, IOT devices can enhance safety by monitoring environmental conditions, detecting anomalies and triggering alerts. This proactive approach helps prevent accidents and ensure a safe working environment for warehouse personnel.

When combined, autonomous and IOT technologies create a powerful synergy that drives operational excellence. For instance, AMRs equipped with IOT sensors can communicate with warehouse management systems to optimize routes and avoid traffic congestion. This integration leads to improved efficiency and lower operational costs.

The people involved

As automation and the IOT transform warehouse operations, the benefit to the humans involved is a crucial point. These technologies empower employees by freeing them from repetitive and physically demanding tasks, allowing them to focus on higher-value activities such as problem-solving, innovation and customer service. Additionally, data-driven insights generated by these technologies can help warehouse managers make informed decisions, such as refining staffing levels and improving inventory management. By leveraging the strengths of both human and machine intelligence, warehouses can achieve optimal performance.

Warehouse of the future

The future of warehouse operations is bright, with autonomous- and IOT-driven intralogistics systems paving the way for a more efficient, sustainable and customer-centric industry. As technology continues to advance, expect to see even more innovative solutions emerge, such as autonomous drones for inventory management, AI-powered predictive analytics for demand forecasting, and AI driving adaptive robotics and real-time decision-making for complex tasks. Also look for robotics-as-a-service models that lower adoption barriers, plus the increased use of digital twins for simulating and optimizing entire warehouse operations before physical implementation. The rapid growth of micro-fulfillment centers in urban areas, driven by automation and IOT, is also reshaping last-mile delivery.

Warehouse expertise achieved

While the benefits are clear, successfully integrating these advanced technologies requires careful planning. Companies are increasingly focused on navigating initial investment costs and ensuring seamless integration with existing systems to unlock the full potential of these transformative solutions. By strategically incorporating these technologies and adopting a data-driven approach, warehouse operators can unlock the full potential of their operations. The journey toward a fully automated and intelligent warehouse is underway, and the benefits are clear: increased efficiency, reduced costs, improved safety and enhanced customer satisfaction.

Invest in a supply chain warehousing certificate for your team so you can master these advancements, perfect inventory operations and gain a competitive edge in the warehouse of the future.

Editor’s note: This article summarizes key takeaways from “Autonomous and IOT-Driven Intralogistics for Industry 4.0 Warehouses” by Abhay K. Grover and Muhammad Hasan Ashraf. The original article was published in the Transportation Journal, which ASCM members can access to read all the latest industry research.

Picking Solutions for Industry 5.0

Mon, 09 Dec 2024 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was September 15, 2021.

In many supply chains, picking is one of the most expensive warehouse operations, comprising as much as 55% of a distribution center’s operating costs. The process also tends to be mundane, error-prone and physically taxing. All of these aspects make picking a perfect opportunity for robots and other automation to step in and help.

The fact is, robots and automation are excellent at jobs that require:

Traveling long distances
Operating in high-bay, narrow-aisle configurations
Working in hot, dirty environments
Counting and monitoring
Cleaning and disinfecting
Loading and unloading trailers
Optimizing systems and operations

For example, automated mobile robots (AMRs) can collaborate with humans to make order picking more efficient. AMRs are powered carts used in storage media that use carton or each picking. Human pickers usually are assigned to several aisles within a warehouse. An AMR can use lidar systems to navigate through the warehouse to the human pickers, collect the picked items and move them to the location of the next step in the fulfillment process.

Similarly, automated guided vehicle systems (AGVSs) can help with picking bigger orders. AGVSs have long been used for transporting pallets from shipping docks to marshaling areas, where human-driven forklifts pick up the pallets and move them to storage. Now, AGVSs commonly are being used in e-commerce warehouses to pick a full rack of a product and move it to a picking station, where the human picker can select the quantity needed to fulfill the orders.

The collaboration of robots and humans is the hallmark of Industry 5.0. This next industrial revolution builds on Industry 4.0 and involves humans working alongside robots and other smart machines. The approach still leverages big data and the internet of things to achieve operational efficiency, but it adds the human element back into the process.

With robots handling the simple and mundane tasks, humans are freed to focus on the responsibilities that only they can accomplish — at least for now. Currently, humans are better than robots at jobs that require:

Critical thinking
Strategic thinking
Creativity
Empathy and communication skills
Imagination
Dexterity and clear vision or recognition
Technical know-how

The combination of human and robot workers can help organizations achieve greater operational efficiency while creating a safer and more enriching work environment for human workers. The role of the human worker can shift from monotonous tasks to activities such as strategic planning, nonroutine decision-making, continuous improvement projects, warehouse design and work requiring dexterity.

Automation for all shapes and sizes

However, some of the latest and greatest robotic and automation tools are expensive and difficult to justify for smaller organizations with low throughput. These facilities still can benefit from lower levels of automation that can offer operational benefits in terms of efficiency and flexibility. For example, horizontal and vertical carousels can bring items to the human picker, thus reducing travel time, improving picking efficiency and even reducing picking errors.

A horizontal carousel is a storage and picking system composed of a frame with a horizontally rotating carriage containing bins of material. A picking and stocking station usually is located on one end of the carousel. A computer system controls the carousel. Multiple carousels can be stacked to take advantage of the vertical space in the carousel’s area. A vertical carousel is a series of trays or bins that are mounted in a vertical chain like cars on a Ferris wheel. The trays rotate to bring the required items to the operator for picking.

For picker-to-part picking systems, voice-picking and pick-to-light systems can guide workers around a warehouse to quickly execute accurate picks. Voice-picking systems read instructions to workers while the worker walks, preventing them from needing to stop to read a picking sheet. The systems also can require audio feedback from the worker to confirm the pick. Many systems are equipped with multiple language options to support workers who speak languages other than English. Pick-to-light systems use lighting to guide workers to the correct pick. These systems can be language-agnostic, making it even easier for foreign-language speakers to work in the warehouse. Both systems tend to be easy to install, require minimal training to use, deliver excellent efficiency benefits and reduce picking errors by as much as 85%.

Millennial-robot partnerships

In addition to making work easier and more efficient, robotic and automation solutions could help attract millennial workers to warehouses. Recent studies show that nearly 80% of supply chain operations still are performed manually. By 2022, it is estimated that 50% of the global workforce will consist of millennials. This generation of tech-savvy workers is more comfortable with technology, which means they are more excited to work with robots; automation; mobile devices; and even wearable technology, such as headsets for voice-picking systems.

Attracting workers to warehouse roles is increasingly critical. In the last few years, e-commerce demand in the U.S. grew to about $1.119 trillion in 2023 from $1.040 trillion in 2022. With more shoppers switching to online shopping during the pandemic, retailers could no longer rely on in-store shoppers for free picking labor. Instead, more workers are needed to help with fulfillment efforts from warehouses big and small.

As organizations invest in new technology, they will be able to recruit and retain the best skilled workers, equipping them with innovative technologies that will support the modern warehouse.

Learn about the ASCM Supply Chain Warehousing Certificate. This foundational program, developed by ASCM in partnership with Prologis, provides an overview of key warehousing and distribution topics to help learners improve their skills in this important function.

6 Ways to Improve Manufacturing Throughput

Mon, 09 Dec 2024 00:00:00 -0600

You know your shop needs to run at full capacity to remain profitable and competitive. But do you know if it actually does? As a manufacturer, throughput in production can mean the difference between meeting quotas and losing customers to your competition. Falling behind on throughput can lead to slow or delayed orders, which in turn can send your customers running to your competition.

Here are six foolproof ways to increase your manufacturing throughput and make your shop more efficient.

1. Review your existing workflow. You can’t make any improvements until you actually know how your shop floor functions. There are three main areas to evaluate:‍ First, labor: Do you have enough skilled people in the right positions? Do your staff members clearly know their objectives and work plans? Do you have an efficient project manager in place who is able to stay on top of things? Next is equipment: Is all of your equipment in good repair? Is the technology that you rely on actually suited to your current needs? Thirdly, processes: Are they clearly mapped? Where are your pain points and bottlenecks?

Understanding where you are and where your issues lie helps you to make impactful improvements. It can be helpful to leverage an enterprise resources planning system or other software to monitor your shop floor, assess how it’s functioning and identify problem areas.

2. Eliminate bottlenecks. Once you have reviewed your existing workflows and identified where your problems are, work on eliminating bottlenecks. Maybe you have some processes that have been in place for such a long time that they’re now riddled with workarounds. Create new, streamlined processes that align with the current setup and flow of your factory. Or, you may need to add extra stations to a long process so more parts can be processed at once. You may also need to find ways to make a process more efficient or possibly even eliminate a process entirely and replace it with a different one. The right solutions will depend on factors such as spare floor space, expense of equipment involved, and the nature and necessity of a given process. Use the intel you discovered in step one to make informed decisions.

3. Reduce equipment downtime. One of the best ways to slow things down is by ignoring regular maintenance. Scheduled downtime for maintenance costs much less — in terms of both time and money — than downtime due to broken or worn-out equipment. Don’t delay maintenance thinking you’re actually speeding up your shop floor. Instead, plan for it regularly to ensure your machinery is always in optimum shape. Again, use the information you gathered in step one about your shop floor and workflow processes to identify the best time to schedule routine maintenance to have the least impact on your business. And, importantly, train equipment operators in regular maintenance and troubleshooting procedures.

4. Reduce parts rejection rate. You may have a high output, but you will still fail to meet throughput goals if too many parts are being rejected. If you can produce 500 parts per hour but have a 10% part rejection rate, you’ll waste 50 parts every hour, or 400 parts a shift. If you can cut your rejection rate in half, your throughput would increase by 200 parts per shift. Look for elements in your production process that can damage your parts or cause them to fail to meet production standards. By identifying and correcting these issues, you improve production throughput and increase customer satisfaction with your products. You’ll also avoid money wasted on remanufacturing or reprocessing parts.

5. Improve employee training. When employees lack proper training, they may not have the skills and competence to find improvements that they can make at their workstations. Worse yet, those who are poorly trained may accidentally create delays because they don’t understand the entirety of the production process. Give them the skills to make positive, well-informed changes to the production process is key to maximizing throughput.

Educate employees about where their role fits within your company’s goals and the greater supply chain. Each person’s efforts can have ripple effects up and down the supply chain. Helping them understand their impacts empowers them to do better and do their work with a sense of pride. Shape your shop floor operators into future leaders at your organization through certifications including ASCM certifications and certificates. Also, ASCM’s Supply Chain Knowledge Center offers a variety of short, on-demand virtual trainings about a variety of supply chain topics, from automation and robotics to manufacturing to data analytics to operational excellence. Plus, your employees will appreciate your investment in their future and feel more valued when they believe you are building a career for them at your organization.

And don’t limit training and education to equipment. Your shop floor will run more smoothly if everyone understands your policies regarding workplace harassment and proper communication. This ensures a more amicable and functional workplace.

6. Use factory automation. Consider automating some manufacturing processes. Even your most dedicated and skilled employees can get exhausted after a few hours of heavy labor, leading to reduced work consistency and increased risk of injury. The appropriate use of factory automation can dramatically increase manufacturing throughput. Automated production systems can outperform humans in terms of precision and the ability to perform repetitive tasks at a great speed. In the presence of smart machines, your staff can focus on planning, programming and other important tasks and leave the “heavy lifting” to the machines. Modern industrial technology makes it possible for you to produce a large number of products while meeting stringent quality control requirements and improve your workers’ quality of life by preventing them from having to do difficult and repetitive heavy labor. Strategic use of the right automated machines on your shop floor can have a great impact on your overall productivity and throughput.

All of these steps require company leaders to take a look at the big picture. Take a step back, then jump forward to meaningful improvements.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was July 13, 2022.

From Coffee to Couches, New Tariffs Loom

Fri, 06 Dec 2024 00:00:00 -0600

As we head into the winter season here in Chicago, the weather is turning colder and the days darker. Holiday lights help warm things up a bit — if only mentally — but a hot cup of coffee remains a winter essential for many. Unfortunately, the cost of our beloved brew is going through the roof.

“Arabica coffee prices have hit their highest level since 1977 as concerns grow about tight global supplies,” The Wall Street Journal reports. Extended drought and extreme temperatures in “powerhouse” coffee-grower Brazil are causing the higher prices and low production; meanwhile, more exports are reducing stockpiles. In fact, poor weather conditions have been plaguing Brazil for four years, the Journal goes on to explain, so “high coffee prices are needed to rationalize a further supply response.” On the bright side, other nations have been boosting their coffee production in recent years, and that trend is likely to continue.

Still, no matter how much coffee is grown, soaring prices will be inevitable if the United States levies new tariffs “of 25 percent on Mexican and Canadian goods and an additional 10% on Chinese merchandise” as President-elect Trump has promised to do, per The Washington Post.

Harvard Business Review cites research on the effects of increased tariffs during Trump’s first term: “By and large, American importers and, to a lesser extent, American consumers paid for the tariffs set during Trump’s first term.” Washing machines, for example, saw a 20% price increase and “the trade war diminished U.S. economic well-being by 3%, based on how tariffs affected firms’ cash flow.” Despite the intentions of the tariffs at that time, manufacturing did not return to the United States, the article goes on to say. This was largely because importers moved sourcing to other countries, such as Vietnam, rather than reshoring production. Also, there were few U.S. factories with idle capacity that could easily replace Chinese imports.

Many companies are already working to prevent severe price jumps. Home products retailer Williams Sonoma “is prepared to reduce its exports to China if tariffs increase and has mapped out a category-by-category plan to reduce sourcing from the country as well,” Supply Chain Dive reports. The company’s supply chain is vertically integrated, with 90% of the products being exclusive and proprietary with its own sourcing operations. Notably, Williams Sonoma is the 11th-largest container importer in the United States, giving the company enormous leverage in its partnerships and the “scale and strategy to pivot.” Additionally, a significant portion of its production is already based in the States, including North Carolina, Mississippi and Oregon — a definite advantage in the protection against future tariffs.

There are ways to help protect your supply chain from a “tariff-related supply chain crisis,” Forbes advises:

Stockpile inventory: Import products now before any tariffs go into effect.
Diversify: Look for new sourcing and production outside of China, Canada and Mexico.
Manage financial impact: There may not be anything you can do to avoid paying high tariffs on some goods, but look for other places to save money, including “improving operational efficiencies, renegotiating contracts or adjusting pricing strategies,” as well as adopting the latest technology.

Building a strong defense

No matter what the future holds, supply chain professionals must prepare for change. One way to ensure you don’t get left behind is with ASCM’s comprehensive APICS training programs and certifications. Become certified in planning and inventory management; logistics, transportation and distribution; supply chain transformation; and much more. Our cyber sale continues through the end of today (Friday, December 6), so hurry to take 15% off a Learning System, bundle and certificate programs. Use promo code CYBER24 to begin warming up with winter savings!

10 First Steps to Supply Chain Resilience

Wed, 04 Dec 2024 00:00:00 -0600

Global supply chains have faced unprecedented challenges in recent years, from natural disasters and geopolitical tensions to pandemics and economic downturns. To navigate these complexities and build a resilient supply chain, organizations must adopt a strategic and proactive approach. Drawing on key insights from ASCM Insights blog content, following are 10 essential strategies — and how to get started — so you can significantly enhance your supply chain’s resilience:

1. Digital transformation: To build a resilient supply chain, organizations must embrace digital transformation. Implementing advanced tracking and monitoring systems, such as IOT devices and RFID, provides real-time visibility into the movement of goods. Leveraging AI-powered analytics can help forecast demand, identify potential disruptions and optimize inventory levels. Additionally, creating a digital twin of the physical supply chain allows for simulation of different scenarios and testing responses to potential disruptions.

Get started by implementing a pilot program to track a specific product or material using IOT- or RFID-enabled devices and analyzing the data to identify bottlenecks or inefficiencies.

2. Diversification: To mitigate risks associated with single-source dependencies, supply chains must diversify their networks. By sourcing materials and components from multiple suppliers in different geographic regions, companies can reduce vulnerability amid political instability, natural disasters or economic fluctuations. Regular supplier risk assessments can help identify and mitigate potential issues including financial instability, quality problems or ethical concerns.

Get started by conducting a supplier risk assessment to identify potential hazards, then develop a plan to diversify sourcing for at least one critical component.

3. Resilient workforce: A resilient supply chain depends on skilled and engaged people. Investing in continuous training and educational programs equips your teams with the necessary skills to adapt to ever-changing conditions. Further, fostering a culture of collaboration and innovation improves decision-making and problem-solving. And implementing employee retention strategies can help minimize talent loss and ensure stability.

Get started by developing a training program focused on supply chain resilience and offering it to key personnel.

4. Visibility and transparency: Data-driven decision-making is crucial for effective supply chain management. By leveraging data analytics, industry professionals can identify trends, patterns and potential disruptions. Meanwhile, collaborative platforms facilitate information sharing and communication among supply chain partners, improving transparency and coordination. Also, blockchain technology can enhance transparency, traceability and security by providing an immutable record of transactions.

Get started by establishing a centralized control tower — this single source of truth for all supply chain data will enable better decision-making and support team collaboration.

5. Risk management: To succeed, all supply chain organizations must proactively identify and mitigate risks. Regular risk assessments, comprehensive business continuity plans and dedicated crisis management teams are essential. Scenario planning and risk transfer strategies can further enhance resilience. By proactively addressing potential threats, networks will be well-positioned to minimize disruptions and ensure business continuity.

Get started by developing a business continuity plan for at least one major disruption scenario; learn from this experience and expand as needed.

6. Strong supplier relationships: Building strong, collaborative relationships with suppliers is vital. By working closely with suppliers, organizations can more effectively share information, address challenges and improve performance. Supplier performance management programs helps ensure quality, delivery and cost-effectiveness. Additionally, promoting supplier diversity can reduce risk and access a wider range of capabilities.

Get started by establishing a regular communication cadence with key suppliers and conducting joint performance reviews.

7. Supportive ecosystems: Information-sharing and collaboration with your supply chain colleagues around the world is essential for building a resilient supply chain. Learning from each other brings about joint problem-solving and coordinated efforts to address ongoing challenges. By working together, professionals can more easily identify and mitigate risks, improve efficiency, and enhance overall supply chain performance.

Get started by joining an industry association to network and begin collaborating with your supply chain colleagues.

8. Sustainable and ethical supply chains: Sustainable and ethical practices are a critical element of building long-term resilience. Adopting sustainable sourcing practices, reducing carbon emissions and minimizing waste helps you mitigate environmental risks and enhance brand reputation. Additionally, ethical sourcing and fair labor practices can strengthen relationships with suppliers and customers.

Get started by mapping out your supply chain to identify key stages and potential impact areas, such as resource extraction, manufacturing, transportation, and end-of-life; then, identify areas where you can take action.

9. Enterprise architecture: Enterprise architecture plays a crucial role in building resilient supply chains by providing a holistic view of IT systems, business processes and data flows. This strategic tool maps the relationships between software applications, business processes and users. By visualizing these connections, organizations can identify inefficiencies, risks and opportunities; improve agility; reduce costs; and enhance overall supply chain performance.

Get started by conducting an IT audit to identify potential vulnerabilities and develop a plan to improve the resilience of your systems.

10. Learning from the past: Supply chains must learn from past disruptions in order to prepare for future challenges. Organizations should conduct regular risk assessments, develop comprehensive business continuity plans and simulate potential disruptions to test their resilience. By continuously learning and adapting, you will be able to build more resilient supply chains that can withstand future shocks.

Get started by providing regular training for employees in conducting post-mortem analyses, risk management and crisis response in order to identify key lessons learned.

Cut Through the Hype to Enable Your Digital Supply Chain

Tue, 03 Dec 2024 00:00:00 -0600

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publish date was April 9, 2020.

Building advanced supply chain capabilities is more important than ever. Customer requirements, corporate goals, market dynamics and available data are changing rapidly, and all can have a significant impact on best practices, talent and agility — especially in turbulent times. To be successful at developing your supply chain of the future, the four foundational dimensions of people, process, data and technology must be addressed simultaneously. Here’s how.

Optimization, algorithmic planning, advanced analytics, artificial intelligence, and machine and deep learning are terms used daily in conjunction with supply chain operations. But how do you know what might be beneficial to your company’s supply chain operations? And how do you start the journey to acquire and master advanced supply chain planning capabilities?

Strategically focused organizations with advanced supply chain planning and optimization capabilities are leading the charge toward digitally enabled operations. They did not become leaders overnight; rather, their journey to a digitally optimized supply chain was built systematically over time while developing the capability to quickly sense changes in the end-to-end supply chain and proactively respond with optimal decisions.

The first step is building a team to support your digital supply chain. Advanced digitally enabled capabilities add value; a strong team that can maximize these capabilities takes you to the next level. As you build your team, make sure to ask these questions:

Who should lead the effort to digitize your supply chain?
What skills does this leader need?
How do you define the roles to enable a digital process and culture (for example, supply chain analyst, database engineers, data scientists, etc.)?
Do you have the required skills available within the company, or will you need to look externally?
How should the team be organized to efficiently run the business while driving innovation?

Step back and determine if your organization can successfully meet current operational objectives at the same time you develop enhanced capabilities for the future. Often, establishing a supply chain center of excellence can help build the necessary skill sets and capabilities.

Next, rethink current processes to gain benefits from digital capabilities. Digitization involves gaining visibility and access to operational data across the extended supply chain. However, the way you use this data to solve problems and enable new capabilities is where real value is created. Be prepared to explore and discover how to maximize the benefits by solving existing problems and tackling new opportunities.

Make sure you have the right data. The volume of data is growing exponentially, and the majority of this information resides within business domains. To develop meaningful insights, supply chain data needs to be clean, consistent, comprehensive and current. Too often, the available data is difficult to analyze because it is split between multiple reporting tools and systems — or it’s simply bad data. Achieving robust supply chain data management capabilities requires

the establishment of organizational roles and business processes that continuously drive supply chain data management excellence
technology that supports key supply chain data management business processes
ownership of the process, data and technology by the supply chain organization.

The final foundational component to enabling your digital supply chain of the future is a strong technology platform. To accommodate the fast-paced, 24x7x365 supply chains of today, the platform should support rapid deployments, flexible user interfaces, agile process adjustments and scalability. It also should automate and streamline data management to facilitate structured and unstructured data acquisition, cleansing, management and visibility across the extended supply chain. Look for multi-horizon, multi-aggregation, multi-functional, multi-organization, multi-unit and multi-language operations. Additionally, advanced numerical and visual analytics support real-time analysis and best-practice adoption to enable robust planning and optimization capabilities from product design to customer availability. Finally, advanced supply chain systems should provide embedded and purpose-built artificial intelligence to automate the routine and augment advanced analysis and decision making.

Strengthen your supply chain capabilities with SCOR DS. Explore how ASCM’s SCOR can transform your linear supply chain model to a more synchronous network.

A Gift of Gratitude for Our Supply Chain Community

Fri, 29 Nov 2024 00:00:00 -0600

On the heels of the U.S. Thanksgiving holiday, I want to take a moment to express my sincere thanks for supply chain professionals around the world. Here at ASCM, we know that your dedication ensures the swift production and delivery of everything from food and medicine to wine and toys. We are proud to support your hard work and your ongoing contributions to our global supply chain.

Now, this year hasn’t been an easy one. As a community, we’ve experienced severe weather disruptions, geopolitical tensions and economic volatility, with rising tensions between major powers and a growing number of regional conflicts. Meanwhile, increasing globalization creates vulnerabilities in our systems, including cybersecurity risks and labor disputes.

Fortunately, with these challenges has come important new knowledge: We’ve learned how to be more resilient by focusing on agility and balance. Our commitment to environmental sustainability continues to inspire. And whether it’s a giant 3D printer that’s reinventing manufacturing, AI to better understand customer demand or robots assisting with manual labor in a warehouse, today’s supply chains are turning to tech to solve the problems of the past — and the future.

Simple strategies for resilience

As 2024 winds to a close and we look to the future of supply chain management, ASCM is excited to offer you a tool to help you prepare and navigate the challenges ahead. As a small token of our appreciation, our editorial staff has created 10 First Steps to Supply Chain Resilience, a toolkit of simple, actionable first steps that any supply chain professional can take to make their networks more robust and adaptable. Drawing on key insights from ASCM research and Insights blog content, the toolkit describes 10 essential supply chain priorities — and, importantly, how to get started. From digital transformation to risk management and sustainability, this comprehensive guide will equip you with essential, resilience-building knowledge and tools.

ASCM would not be what it is today without you. I hope you find this toolkit a valuable resource and a small token of our appreciation for all that you do.

Supply Chain Pain Points You Can't Ignore

Tue, 26 Nov 2024 00:00:00 -0600

Every supply chain professional knows that our global networks face a myriad of challenges that can hinder efficiency, resilience and overall performance. ASCM’s editorial team has identified the following 10 key challenges that can really make or break supply chains — and we’re willing to bet that at least a few will resonate for you:

Digital transformation blockers: Implementing digital technologies is a daunting task, requiring significant investment and organizational change. Resistance to change, lack of skilled workforce and complex legacy systems can hinder digital transformation efforts.
Lack of visibility: Limited visibility into supply chain operations leads to unexpected disruptions, delayed deliveries and higher costs. Without real-time data on inventory levels, shipment status and supplier performance, organizations struggle to make informed decisions.
Negative environmental impact: Supply chains contribute significantly to environmental degradation, including greenhouse gas emissions and resource depletion. Meeting increasing consumer and regulatory demands for sustainability requires significant effort and investment.
Ineffective planning: Accurate demand forecasting, inventory management and production planning are crucial for efficient supply chain operations. However, factors such as fluctuating demand, supply disruptions and unforeseen events can make planning a complex challenge.
Ever-increasing risk and disruptions: Global supply chains are exposed to a wide range of risks, including natural disasters, geopolitical tensions and economic fluctuations. These disruptions often lead to supply shortages, increased costs and damaged brand reputation.
Inventory mismanagement: Balancing inventory levels to avoid stockouts and excess inventory is a delicate act. Inefficient inventory management results in higher holding costs, lost sales and increased operational expenses.
Inefficient collaboration: Effective collaboration among different departments and supply chain partners is essential for smooth operations. However, poor communication, siloed operations and lack of trust impede collaboration and lead to inefficiencies.
Siloed operations: Siloed operations cause a lack of visibility, delayed decision-making and increased costs. Breaking down silos and fostering cross-functional collaboration is crucial for improving supply chain performance.
Complexity: Modern supply chains are becoming evermore complex, with multiple tiers, diverse suppliers and intricate logistics networks. Managing this complexity requires sophisticated planning, execution and control.
Finding a place in the market: To stay competitive, organizations must continuously innovate and differentiate their supply chains. This requires a deep understanding of customer needs, market trends and emerging technologies.

How many of these 10 supply chain problems hit home for you? Well, the good news is that you can learn how to solve each of them by downloading our brand-new eBook, Overcoming the Top 10 Supply Chain Challenges, you'll gain valuable insights, practical advice and actionable strategies to improve your supply chain's performance starting today.

‘Tis the Season for Tech-Powered Supply Chains

Fri, 22 Nov 2024 00:00:00 -0600

Supply chain professionals are in the midst of Black Friday and Cyber Monday — a pre-holiday shopping extravaganza that offers consumers a unique opportunity to indulge in deep discounts, BOGO savings and extended store hours. For shoppers, it's a tradition as much about the thrill of the hunt as it is about finding the perfect deal. For supply chain professionals, it’s a high-stakes balancing act and critical moment to tap into essential knowledge and skills.

According to the National Retail Federation, consumers plan to spend a record $902 per person for gifts, food and decorations — up about 3% from last year. In anticipation, retailer Target has been strengthening its fulfillment network, reports Supply Chain Dive. The company now has 11 sortation centers in the United States, including a brand-new facility in Detroit that “allows the company to serve more than 3 million additional customers.” In fact, Target expects to process more than 400,000 packages per day across the network, quadrupling its normal, nonholiday output. The push is also an effort to increase the number of same- and next-day deliveries, by about 150% in the Detroit area alone.

To meet growing demand, the big-box giant is hiring more seasonal workers and turning stores into hubs. Meanwhile, other businesses are leaning on technology such as AI, automation and digital marketplaces to ensure a smooth holiday season. Some are adopting new B2B technologies, which optimize inventory management and payment processes, making it easier for partners to work together efficiently. For example, embedded payment systems enable suppliers and buyers alike to interact directly with the platform and avoid delays, and warehouses featuring robotic technology help humans increase their efficiency. According to Martechcube, predictive analytics is leading the way in smarter inventory management, personalized marketing and precision pricing at scale via real-time observation of competitor prices, consumer demand and revenue margins. Thus, it can help ensure discounts are attractive enough to gain buyers without eroding profits.

There are related challenges, of course. For instance, the sheer number of orders placed at this time is keeping warehouses managers on their toes. “The modern retail warehouse is no longer a simple storage facility, but a critical nexus for order processing and fulfillment, with teams working around the clock to move parcels along to their next destination,” notes a story in Supply Chain Brain. Retail warehouses have advanced equipment and devices to meet operational requirements, and this tech needs constant connectivity to avoid disruptions, slowdowns or even safety issues. Wi-fi alone may not be enough; a combined approach with public and private cellular, plus internet-of-things integration can increase efficiency in most instances.

Get ready to save

As supply chain professionals, we’re always considering the many moving parts of getting products from the factory floor to the warehouse to the end user — whether that’s another tier in the network or the perfect spot under the Christmas tree, menorah or other festive holiday display. And speaking of festivities, get ready to have some fun saving at ASCM’s big cybersale! Use promo code CYBER24 to take 15% off APICS certifications, learning systems, bundles and certificate programs. You’ll be ready to conquer the holiday rush this year and every year after.

10 Pillars of Supply Chain Leadership

Mon, 18 Nov 2024 00:00:00 -0600

Effective supply chain leadership has never been more critical. Amid extreme weather, shortages, and geopolitical conflict, these professionals are the heroes guiding global planning, sourcing, and delivery, enabling organizations to move beyond managing disruption and back into a growth cycle.

Interestingly, McKinsey reports that working in supply chain provides an easier path to industry leadership compared to similar fields. Because supply chain functions are highly interconnected and constantly grapple with change and risk, professionals gain superior end-to-end knowledge and forecasting skills that differentiate them in the C-suite. Ascending these ranks is highly rewarding, with top leaders enjoying annual compensation as high as $201,000 plus additional salary compensation.

There are 10 key traits and skills that help professionals move from supply chain management to supply chain leadership. Read on to discover the specific skills that supply chain leaders use to garner the respect and trust of team members and become highly effective:

1. Managing operations requires deep supply chain knowledge acquired from years of practical experience and professional development. A supply chain leader’s experience and knowledge should be both tactical and strategic so they can manage operations while handling risk and planning for growth. Further, more than 20% of companies have a chief supply chain officer, and 38% have a C-suite executive with comparable responsibilities. Members of supply chain leadership need to hone their strategic skills to effectively represent this important business function at the executive table.

2. Managing people starts with identifying potential talent and helping those candidates grow within the organization. This includes supporting on-the-job training and investing in professional development as people progress. Of equal importance is the need to support workers as humans. Employees must be given room to grow. They should be coached on how to fix and learn from mistakes. Benefits such as flexible schedules, paid time off, and remote or hybrid work opportunities support this work-life balance.

3. Great supply chain leaders encourage collaboration and inspire team members to share ideas and workloads. This also means encouraging input from diverse groups to ensure all ideas are respected and considered.

4. Communication is vital to the vision, strategy and expectations that keeps employees updated about progress and changes. This enables followers to support the supply chain function and its key goals.

5. Tensions will arise, so it’s necessary to have the conflict-management skills to handle these issues by staying calm, being a voice of reason, focusing on the positive, addressing the problem and negotiating a resolution.

6. Leaders must not reduce people to their jobs, and this requires emotional intelligence. It's necessary to take the time to understand people’s concerns and challenges, both at and outside of work. Empathy is critical to helping people through challenges. Moreover, leaders should express joy when team members do a good job or reach a goal to inspire them and show that efforts are appreciated.

7. Top supply chain leaders have the foresight to embrace innovation and are early adopters of emerging supply chain technology. This makes them better able to position their organizations to be supply chain leaders rather than followers.

8. Frontline workers have valuable insights, so leaders should use their solid listening skills when employees offer ideas and report challenges. This creates even greater levels of trust.

9. Supply chain management is never stagnant, so quality supply chain leadership relies on continuous learning and growth. This is the only way to meet the needs of supply chain organizations and the people they serve.

10. Truly impactful supply chain leaders are not only dedicated to responsible, ethical business practices, but also inspire the same passion in their people. They seek out solutions that help them create sustainable supply chains; empower their organization to reach its climate goals; and design and manage networks that prioritize the triple-bottom line, delivering profit and excellence while safeguarding society and the planet.

Editor’s note: Some of the information in this blog has been updated to reflect current research and insights. The original publication date was August 2023.

Demonstrate your ability to lead by investing in your workforce. Check out ASCM training programs and talent solutions to give your team the boost they need to drive growth and productivity.

Is AI the Secret to Stress-Free Shopping?

Fri, 15 Nov 2024 00:00:00 -0600

Have you ever walked into a clothing store and felt completely lost in a sea of racks, styles and sizes? Or spent hours online, scrolling through endless product pages, only to end up with nothing in your cart? These common shopping frustrations may become a thing of the past, thanks to AI. The technology is transforming shopping from an often tedious and unfruitful task to an efficient and exciting experience.

AI-enabled technology is making it easier than ever for retailers to offer valuable customization — not just making product recommendations or adjusting pricing, but tracking inventory and swiftly restocking desired items. In addition, real-time dynamic pricing is enabling retailers to refine pricing strategies, boost sales and maximize profits, all while seamlessly providing a positive shopping experience, reports Forbes.

Also in stores, AI is monitoring customer shopping patterns, including which aisles people tend to linger in and which items or end caps draw the most attention. The checkout process is being streamlined with AI, as well: So-called “computer vision” aids in the use of frictionless checkout, per Intel. For customers uninterested in dealing with sales personnel, or just short on time, “human-cashier-free checkout, smart self-checkout systems and integrated video analytics that identify products when a bar code is missing or unreadable can help to eliminate the need for employee assistance.”

Overall, AI is helping retailers better understand customer demand, predict future sales and optimize buying. In fact, McKinsey reports that generative AI is poised to unlock between $240 billion and $390 billion in economic value for retailers, equivalent to a margin increase across the industry of as much as 1.9 percentage points.

In the not-too-distant future, AI will even enable visual search capabilities in which customers can look for products using images instead of text. Likewise, there will soon be a time when customers will just describe what they’re interested in, and websites will immediately provide a list of relevant suggestions.

For those of us who prefer the online shopping experience, logistics providers are also using AI to deliver our packages more efficiently and accurately. For example, DHL Supply Chain uses generative AI to quickly analyze shopper and partner requirements. And Global Chief Development Officer Markus Voss says genAI can assess data from potential customers, before designing logistics concepts, making their engineers far more productive.

The future is here; are you ready?

As McKinsey notes, the biggest difficulty in implementing AI is “rewiring” the organization — helping employees understand and employ AI to its full potential. To thrive in supply chain, whether in retail or logistics, warehousing or procurement, making the most of this technology is critical. Boost your knowledge of AI and other key supply chain solutions with ASCM’s Supply Chain Technology Certificate. You’ll equip yourself with the skills to enhance transparency, anticipate disruptions, reduce costs, accelerate delivery — and ultimately deliver a more seamless and satisfying experience for your own partners and customers.

Beyond Hiring: Why Upskilling and Reskilling Are the Keys to Talent Retention

Wed, 13 Nov 2024 00:00:00 -0600

Globally, a whopping 75% of employers are facing a talent shortage. If you’re among them, you might be wondering whether you should build or buy your talent. There are pros and cons to each route. However, choosing to upskill and reskill your employees can play a critical role in building a resilient workforce and boosting your bottom line.

Unlock the potential of your team and prepare them to conquer any challenge. Download the shareable Why Your Supply Chain Team Needs Upskilling PDF.

Upskilling and reskilling saves your business money

In September 2024, 254,000 jobs were created in the United States. Economists further predict that roughly 100,000 more will continue to be added every month. But according to research from the Society for Human Resource Management:

The average cost of a new hire is about $4,700 (including hours spent conducting interviews, background screening, employment assessments and more)
The total cost of a new hire is nearly three-to-four times the position's salary

In other words, if you’re looking to hire a procurement manager — a position that competitively makes on average $104,000 annually — the total cost of recruitment could run you $312,000.

New hires increase training budgets

Once you find the right person, you still need to get them up to speed with your organizational goals, the daily responsibilities of the role and all the business technology used to perform tasks.

In 2022-2023, Training magazine found that organizations spent on average $101.8 billion on training new and current employees. And that billion-dollar figure does not include costs associated with recruitment. So, if you’re already investing in training programs for your business, why not focus on employee retention?

Keep your competitive edge

There are many benefits, outside of financial, for retaining your workforce. Retaining employees reduces departmental disruptions that could cause unnecessary stress. Imagine you manage a lean logistics team and suddenly, you find yourself without a logistics manager. The person who held that position was with your business for five years, the main source of workflow knowledge and a great culture fit.

You’re not going to find a new hire overnight. Now, the work of that one logistics manager needs to be divided up among the remaining team members — adding to their workloads. And unfortunately, all those years of company knowledge and history went out the door with them, maybe to your competition.

How upskilling and reskilling reduce recruitment costs

Breaking it down into dollars and cents, on average, companies spend about $954 per learner. That’s $3,746 dollars cheaper than the average cost of a new hire. Not only do upskilling and reskilling save your organization money; they also make your workforce more resilient.

Your employees want to feel appreciated for the work they do. Of course, offering a competitive financial and benefits package is necessary (check out where supply chain salaries stand by downloading our Supply Chain Salary and Career Report). In addition to money, employees want to know their employer is investing in them. The U.S. Chamber of Commerce found that one of the main reasons employees leave positions is due to lack of career development.

When you invest in upskilling and reskilling, you see higher productivity, a boost in employee morale and a more agile workforce with fewer skill gaps.

Close skill gaps and reduce expenses

Upskilling and reskilling your workforce is a win-win: You need roles filled by highly skilled talent, and your team wants the training necessary for upward mobility. Cut the cost of recruitment from your budget and start training your workforce for the future.

Check out ASCM talent solutions to get started today.

Key Supply Chain Impacts After the U.S. Presidential Election

Fri, 08 Nov 2024 00:00:00 -0600

With the victory of Donald Trump and the Republican Party in the U.S. presidential and congressional elections, significant changes are predicted when the administration takes office next year. For our supply chain community, there are a variety of policies that will affect our global networks.

One major pledge Trump has made is to impose large tariffs on imported goods. During his campaign, he vowed to “swiftly impose a 60% tariff on Chinese goods and at least a 10% levy on all other imports,” Reuters reports, adding that this is likely to cause a “rerun” of the 2018-19 trade war with China. China earns $400 billion annually selling goods to the United States and hundreds of billions more producing components for products Americans buy elsewhere. “Economists say that Trump's tariff plans, likely his most consequential economic policy, would push U.S. import duty rates back up to 1930s-era levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains,” Reuters continues. China may choose to react by increasing economic self-sufficiency and bolstering relationships with Russia.

However they’re levied, experts agree that tariffs are paid by companies — not governments — so supply chains must either reduce their profit margins or pass on the costs to consumers, Reuters continues. In a statement for Supply Chain Dive, National Retail Federation President and CEO Matthew Shay worried that the steep tariffs would amount to a “tax on American families.”

Separately, Yale University's Budget Lab estimates that the total reduction in annual household income under the proposed tariffs would be at least $2,576. Experts agree that tariffs can be useful when applied strategically and thoughtfully, but certain ingredients can only be found overseas, amounting to an across-the-board price increase for many such goods, explains FreightWaves.

As I recently told Inbound Logistics, Trump’s election will presumably cause companies to rush to move cargo ahead of the new tariffs, so supply chain organizations must be prepared. Risk management steps include identifying internal and external threats, communicating with stakeholders and outlining mitigation strategies. Supply chain leaders can help build resilience by diversifying and building up inventory to enhance flexibility in logistics networks. For instance, Stanley Black & Decker has been working on different scenarios in anticipation of the transfer of power, Supply Chain Dive notes, including “moving production and other aspects of its supply chain from China to other countries in Asia or possibly Mexico.” As another example, Helen of Troy, parent company to Oxo Pop and Hydro Flask, is working to move production to suppliers in Asian countries other than China, as well as parts of the Western Hemisphere, “in a bid to diversify its supply base and reduce potential exposure to tariffs.”

Shoring up our supply chains

As numerous companies reassess their dealings with suppliers across the globe, now is the time to ensure you are well-versed in key aspects of supplier relationship management. ASCM’s Supplier Relationship Management Certificate will help you identify, evaluate and deepen supplier and vendor relationships; negotiate supplier contracts and agreements; evaluate and monitor the benefits and risks associated with suppliers; and enhance organizational efficiency to drive value across your supply chain. Sign up today and get ready for a new phase in your supply chain management career.

Supply Chain Traceability Benefits Us All

Fri, 01 Nov 2024 00:00:00 -0500

Fast food is the ultimate convenience. Whether you take the drive-thru, order on an app, or park and walk into a local restaurant, a quick meal is cheap and satisfying — especially the fries. Of course, if the food makes people sick, that’s an entirely different story.

Unfortunately, this is what happened in October 2024 at fast food giant McDonald’s: An E. coli outbreak sickened 75 people across 13 states, leaving one person dead and two seriously ill. The E. coli bacteria was quickly linked to the slivered onions sourced from a facility in Colorado. McDonald’s pulled the relevant menu item and has since expressed confidence that the tainted products are gone from its supply chain. Notably, it has also stopped sourcing onions from the factory and will no longer work with the supplier, BBC News reports.

It's fortunate that the E. coli outbreak was so quickly sourced to the offending onions; still, a lack of transparency and traceability inside food supply chains is a persistent issue, according to the World Economic Forum. Effective communication among touchpoints is essential for supply chain resilience, WE Forum continues, yet 45% of supply chain leaders only have visibility into first-tier suppliers. This opacity “results in an inability to efficiently track and trace items in real time, as well as difficulty in proving the provenance of goods. A lack of tracking results in a lack of quality assurance, as well as the inability for thorough compliance reporting.”

One solution? Blockchain. This technology is “decentralized, secure, transparent and immutable: Blockchain enables value to be exchanged without the need for a third-party authority and has the potential to overcome several enduring challenges in supply chain management,” writes ASCM Editor-in-Chief Elizabeth Rennie. This includes provenance tracking, a method for determining the authenticity of goods and tracing ingredients — whether tainted or not — directly back to the source. “Almost one in 10 people get sick due to food-borne disease worldwide each year, and close to half a million die. Yet with improved traceability, food recalls can happen faster, and the source of contamination can be determined quicker,” WE Forum explains.

By January 2026, the U.S. Food and Drug Administration’s new food traceability requirements will require food manufactures, processors and packers to share information with other entities in the supply chain. (Note this went into effect in January 2023 but will soon be regulated and enforced.) Currently, many organizations are struggling to meet these goals, per Supply Chain Dive. They are wrestling with compliance challenges related to the level of labeling, reporting metrics and the FDA investigation process. Further, warehouse management systems vary significantly across the industry and may not be able to capture the data necessary to follow the new requirements without significant upgrades or overall system replacement.

Meeting the need

The global and highly interconnected nature of our economy demands efficient and innovative tools to keep networks running smoothly. Supply chain professionals can position themselves to maximize these solutions by becoming transformational leaders. This requires systems thinking, digital fluency and analytical expertise. Earning ASCM’s Certified in Transformation for Supply Chain (CTSC) designation will help you tap into your understanding of supply chain strategy, prove your ability to lead a major tech project and set you apart from the competition. Enroll today, and take your first step toward smarter, safer supply chains.

Merge People and Tech for Expert Demand Planning

Wed, 30 Oct 2024 00:00:00 -0500

Editor’s note: This blog post is adapted from the research article "Demand Planning for the Digital Supply Chain: How to Integrate Human Judgment and Predictive Analytics," published in the Journal of Operations Management. The article's findings have been translated into practical insights and actionable advice for supply chain professionals seeking to improve decision-making, minimize disruptions and ensure a seamless and efficient supply chain operation.

In today's rapidly evolving digital supply chain landscape, accurate demand planning is more critical than ever. The ability to forecast future demand and allocate resources effectively can significantly affect a business's bottom line. While technology has advanced significantly, human judgment remains an invaluable asset in the demand planning process. This study explores how to tap into both human judgment and predictive analytics in order to optimize demand planning and drive supply chain success.

Despite the rise of AI and automation, human judgment continues to play a crucial role in demand planning. Humans possess unique abilities that complement the strengths of predictive analytics, such as:

Identifying market trends and disruptions: Human experts can recognize emerging trends and anticipate potential disruptions that may impact demand.
Incorporating qualitative information: Humans can incorporate qualitative factors, such as customer sentiment and industry news, into demand forecasts.
Handling uncertainty and ambiguity: Humans excel at navigating uncertainty and making decisions in complex situations.

At the same time, predictive analytics, powered by AI and machine learning, can provide valuable insights into future demand patterns. By analyzing historical data and identifying trends, predictive analytics can help businesses:

Forecast demand accurately: Predict future demand levels with greater precision.
Identify potential risks: Anticipate disruptions and challenges that may affect supply chains.
Optimize resource allocation: Allocate resources more efficiently based on demand forecasts.

Integrating the two

To maximize the benefits of both human judgment and predictive analytics, it's essential to integrate them effectively. To achieve this objective, begin by leveraging human-guided learning. This means allowing people to provide input to the AI model, guiding its learning process and improving forecast accuracy. The Journal of Operations Management study demonstrated that this approach can be particularly effective when people are able to identify special events or anomalies that may influence demand. For instance, in the research, the authors found that human forecasters were better at identifying significant events such as economic downturns, natural disasters or major product launches.

Likewise, be sure to combine expert judgment with model predictions. Enabling people to fine-tune model-generated forecasts creates a more comprehensive and accurate picture of future demand. The research revealed that this approach can help mitigate biases in both human judgment and model predictions. For instance, human forecasters may have a tendency to overestimate or underestimate demand, while AI models may struggle to account for qualitative factors. By combining the two, businesses can achieve a more balanced and accurate forecast.

It’s also important to continuously evaluate and refine your processes. Do this by regularly evaluating the performance of your demand planning process and making adjustments as needed to optimize results. Track key performance indicators such as forecast accuracy, stockout rates and inventory levels to assess the effectiveness of your demand planning process. Review your demand planning process and identify areas where you can make improvements. This may involve adjusting the weight given to human judgment or refining the AI models used. Finally, the study encourages supply chain professionals to keep up to date with the latest advancements in demand planning technology and methodologies. This will help you ensure that your processes remain competitive and effective.

Drive your network forward

Effective demand planning requires a purposeful combination of human judgment and predictive analytics. By maximizing the strengths of both, supply chain organizations can harness the power of human judgment and predictive analytics to enhance supply chain resilience, drive business growth and profitability.

Gain a competitive edge on the latest digital advancements in supply chain with ASCM's Technology Certificate.

Innovation by the Glass: Lessons from the Wine Supply Chain

Fri, 25 Oct 2024 00:00:00 -0500

While sipping on a favorite wine, we typically focus on the flavor, the fruit, the tannins, whether it’s buttery or earthy or spicy ... People rarely think about what it took to get that wine into our glass. But every step of its journey, from vineyard to table, has been carefully crafted with innovation and sustainability in mind. The wine industry has long been a pioneer in supply chain excellence, and its advancements offer valuable lessons for businesses across all sectors. From groundbreaking harvesting techniques to blockchain-based traceability, the wine supply chain is a masterclass in modernizing tradition and ensuring that every sip is a delightful experience.

It all starts with the harvest, the timing of which is based on both the grape variety and the weather. With the warmer temperatures caused by climate change, grapes actually grow faster and often have nicer flavor now — but the benefits only go so far: In fact, experts believe the wine industry will soon “reach a tipping point due to loss of color, anthocyanins and other critical components.” Moreover, in many grape-growing regions, there’s a persistent threat of drought.

Once the wine has been produced, it is packaged. Until recently, there were very few options aside from glass, corked bottles. But glass is heavy and expensive to ship; aluminum cans, on the other hand, are light in weight and cheaper to transport, which makes them a more sustainable option. In fact, canned wines will represent 10% of the market by 2025.

Once it’s bottled — or canned — wine must be stored at about 50 degrees Fahrenheit. To transport wine at this temperature, producers call on logistics companies with refrigerated trucks. And in California, a new law mandates that these trucks must use hydrogen or battery power: “EVs benefit California wine transportation because they emit no GHGs and support better air quality,” according to Global Trade. “Some wineries have encouraged electric cars at their locations by implementing charging stations. While these technologies can be expensive upfront, they’re integral for long-term sustainability at wineries. They help the supply chain’s carbon footprint and improve human health by preventing the staff from breathing in toxic fumes.”

Tracking the wine to its eventual destination is the final challenge. Adding a bottle of wine to the blockchain, and digitizing a “registry of ownership,” is the next big idea in confirming authenticity, reports The Street. Tokenization also creates a “chain of custody, provenance and supply chain data” to ensure customers who are investing in luxury wine get exactly what they pay for.

Fermenting the next great supply chain ideas

Whether your specialty is retail or reverse-logistics, automotive or aerospace, it’s always inspiring to learn what your colleagues in supply chain are doing to advance the industry. You never know where you might find the next great idea for your own network.

Similarly, ASCM’s academic journals are full of fascinating research with myriad supply chain applications from sectors as diverse as health care to lumber to high-tech. The Journal of Operations Management publishes empirical operations management research that demonstrates both academic and practical relevance. Topics include manufacturing, service operations and supply chain management at both nonprofit and for-profit organizations. The Transportation Journal presents new knowledge relating to all sectors of the supply chain, logistics and transportation, including carriers, third- and fourth-party logistics, transport economics, regulation, and more.

As an ASCM member, you have full access to both. So take a deep dive into the world of supply chain, and toast to the wealth of knowledge available in our academic journals.

Hackers Keep Getting Smarter; Supply Chains Must Too

Fri, 18 Oct 2024 00:00:00 -0500

Supply chain professionals face a daunting challenge: protecting their networks from increasingly sophisticated cyber threats. From ransomware attacks to data breaches, the consequences of an attack can be devastating. It's no longer enough to simply have cybersecurity measures in place; we must continuously adapt and evolve to counter the ever-changing threat landscape.

In the news this week, Cyber Magazine reports that health care supply chains have experienced a huge uptick in cyber threats. A whopping 92% of U.S. health care bodies have been hit by cyberattacks within the last year, and 82% of those interfered with patient services, including “postponed surgeries; unattended medical examinations; and, often, deterioration in patient outcomes.” Many of the affected medical facilities also ran out of life-saving equipment or products.

Supply chains are a prime target for cybercriminals because these networks offer a wide attack surface of interconnected organizations with varying degrees of preparedness, as I told SupplyChain247 this week. A singular weakness can expose the entire network, giving bad actors access to private data and the ability to spread ransomware.

Emerging technologies are particularly vulnerable, warns the World Economic Forum: “More than 200 critical and emerging technologies will rapidly expand potential cyberattack entry points. By 2025, 75 billion connected devices will each represent a potential vulnerability.” Generative AI, for instance, has produced system vulnerabilities that include “data poisoning, model manipulation and adversarial attacks such as AI-driven phishing,” the WE Forum explains. However, AI is also a great use case for enhancing security measures, so it’s important for supply chains to continue to explore and innovate.

Unfortunately, all of this also means that burnout in the cybersecurity sector is at an all-time high. In fact, Forbes reports that one-quarter of information technology executives are actively considering leaving their roles, with 93% citing overwhelming stress as the key driver. These leaders are not only responsible for safeguarding data and infrastructure, but also on the front lines of mitigating damage from myriad incidents. The broad and varied nature of the threats makes the job much more complex, especially during the regular workday — a full 98% of these professionals say they work overtime each week.

This Cybersecurity Awareness Month, let’s support those who are keeping us safe and embrace a more global focus. As ASCM Editor-in-Chief Elizabeth Rennie notes, “Cybersafety is everyone’s job, and the United States certainly isn’t the only nation to be threatened. Over the past few years, hacking groups attacked hospital computer systems in Europe; sent phishing emails to government employees in Australia; and targeted several entities in Malaysia with reconnaissance malware, to name just a few. There’s no doubt that addressing cybersecurity risk requires collaboration to share intelligence, best practices and resources, ensuring a safer digital world for everyone."

Feeding the firewall

As a supply chain professional, there’s a lot you can do to toughen your organization’s defenses. First, check out the many resources in the ASCM Insights blog, including four essential strategies for safeguarding the threat landscape and proven ways to get control of the cybersecurity vulnerabilities. Then, enroll in ASCM’s Supply Chain Technology Certificate program to learn how to evaluate the benefits and risks of common supply chain technologies, make more informed decisions directly affecting performance, and devise solutions to the most pressing cyber challenges. Equip yourself with the tools and knowledge to outsmart the threats and build a more resilient supply chain.

AI-Powered CNC Machining Transforms Production

Wed, 16 Oct 2024 00:00:00 -0500

Editor’s note: AI is revolutionizing the way computer numerical control (CNC) machines are being programmed by manufacturers today. By providing informed recommendations, AI assists less experienced users in making better decisions and reduces the risk of errors. This automated guidance also streamlines the setup process and enhances the accuracy of machining operations. For manufacturers, this translates to improved efficiency, reduced programming time and more consistent part quality. I recently had the pleasure of speaking with DELMIA’s George Chen. We delved into the exciting world of AI and its transformative potential for machining operations.

Rennie: Tell me about the current impact of AI programming on automation, fabrication and manufacturing. Specifically, how can CNC machines be automated to improve performance and efficiency?

Chen: In the realm of automation, fabrication and manufacturing, integrating AI with CNC machining operations is rapidly transforming the industry. As companies seek to enhance precision, increase efficiency and reduce costs, AI-driven CNC machining is emerging as a game-changing innovation.

To start with the basics, CNC machines are automated systems that use computer programming to control the movement and operation of machinery tools such as lathes, mills and grinders. This automation allows for high precision and repeatability in manufacturing processes.

As AI becomes increasingly integrated into CNC machines, algorithms can optimize cutting paths, predict maintenance needs and make real-time adjustments during operations. This results in reduced waste, faster production times and lower operational costs.

Machine learning (ML), as a subset of AI, is also used in CNC machining to improve accuracy. By analyzing historical data and current conditions, ML models can predict tool wear and optimize machining parameters. This predictive capability extends the life of cutting tools and minimizes downtime. For example, AI can analyze large datasets from previous machining operations to identify patterns and optimize future processes. This leads to more efficient production schedules and improved overall productivity.

Rennie: CNC machining has long been integral to the manufacturing process and is known for its precision and repeatability. What new capabilities, that extend beyond traditional limits, is AI now offering?

Chen: There are several. First, AI enhances CNC machining precision by leveraging real-time data analytics. AI-powered quality control systems can reduce defect rates and algorithms analyze data from sensors embedded in CNC machines to detect deviations and anomalies that human operators might miss. This ensures higher consistency and quality in the final product, translating to fewer rework cycles and higher customer satisfaction.

The adoption of AI for predictive maintenance is also revolutionizing how manufacturers approach equipment upkeep. Predictive maintenance powered by AI can decrease maintenance costs and reduce unplanned downtime. By analyzing historical performance data and real-time sensor inputs, AI can forecast potential machine failures before they occur, enabling proactive maintenance that prevents costly disruptions.

In addition, AI’s role in optimizing production scheduling is crucial for maximizing efficiency. AI-driven scheduling systems can improve production efficiency and algorithms can automatically generate and optimize toolpaths, manage machine availability and reduce lead times, leading to more streamlined operations and enhanced throughput.

The automation of complex machining processes through AI significantly boosts productivity. AI systems in CNC machining can automate setup procedures, tool changes and even adapt to new designs with minimal human intervention. This results in faster production cycles and a notable reduction in human error.

Lastly, the ability to quickly adapt to varying production needs is becoming increasingly important. AI enhances CNC machining’s flexibility by enabling rapid adjustments to production parameters. There is significantly less time spent reconfiguring machinery for different products and the key roles AI-driven systems play in this endeavor. This agility supports manufacturers in meeting the growing demand for customized and small-batch production runs without compromising efficiency.

Rennie: Please describe exactly how can AI be used to program a CNC machine. What do professionals need to know?

Chen: Leveraging advanced algorithms to automate and optimize various aspects of the programming process includes generating G-code and M-code, which are essential for controlling CNC machines. AI systems analyze 3D models, material properties and historical data to create efficient tool paths. Several key steps are involved: First, AI evaluates CAD models to understand the geometry and features of the part to be machined. Also, the system simulates different tool paths to identify the most efficient route, reducing material waste and machining time. And AI adjusts machining parameters such as feed rates and spindle speeds based on material and machine capabilities. For example, if a part requires complex contours, AI can determine the best cutting strategy to achieve precise dimensions. This reduces the need for manual programming and minimizes errors, making the process more efficient and reliable.

Rennie: Can you share some real cases with our readers to help them understand successful applications and approaches?

Chen: Several leading companies are already reaping the benefits of AI-powered CNC machining. One well-known utility has adopted AI to boost predictive maintenance and process optimization in its CNC machining operations. Using AI to analyze machine data and forecast potential failures, they achieved a 20% increase in equipment uptime and a 15% reduction in maintenance costs. This approach enhances productivity and lowers operational expenses by minimizing unexpected breakdowns and optimizing maintenance schedules. The business has also been successful in integrating AI to improve manufacturing efficiency and reduce costs.

In another example, an engineering and technology company integrated AI into its CNC machining. Doing that, they have revolutionized its quality control, achieving a 40% reduction in defect rates. AI-driven real-time quality monitoring systems continuously analyze production data and sensor inputs to detect and correct deviations promptly. This proactive approach identifies potential issues before they impact the final product and enhances overall product quality. This technology underscores their dedication to advancing manufacturing excellence and customer satisfaction through innovative AI applications.

Rennie: What’s the most important thing for supply chain professionals to keep in mind when starting out with AI for machining?

Chen: As a supply chain professional, understanding how AI can optimize and streamline manufacturing processes is crucial. By automating tasks, reducing costs and improving quality, AI empowers companies to achieve operational excellence and meet the ever-evolving demands of today's competitive market. The constructive interaction between AI and CNC machining is set to reshape the future of manufacturing. Embracing these innovations will empower industries to achieve new levels of excellence, driving growth and success in an increasingly complex market.

Manufacturers seeking a competitive edge can get ahead of the curve by downloading our Top 10 Trends of 2025. Learn why AI is a game-changer for warehousing and logistics along with other major trends shaping supply chain today.

Hurricane Milton Disrupts Vital Supply Chains Across the U.S. South

Fri, 11 Oct 2024 00:00:00 -0500

On Wednesday, the United States was hit with another deadly and destructive storm, Hurricane Milton. Unusually, much of the devastation was caused by the surprising number of tornadoes that preceded the hurricane’s landfall. At the time of writing, at least a dozen people are confirmed dead, 125 homes have been destroyed and more than 3.3 million families and businesses are without power, Reuters reports. Thankfully, the storm surge was smaller than predicted. However, the disruption is still severe.

Port Tampa Bay, a key hub for handling imported goods including petroleum products, steel, cement, aggregates, and food and beverages closed in preparation for the storm, explains FreightWaves. As we’ve learned from previous closures, any time a major port is shut down, it leads to serious delays and congestion elsewhere as ships are rerouted to other ports — many of which are still recovering from last week’s shutdown caused by the dockworkers' strike. Additionally, hurricane-force winds and flooding have shut down roads in affected areas, hindering the movement of goods inland and disrupting trucking operations. Combined with the power outages at Florida warehouses, distribution centers and other critical facilities, we’re likely facing losses of inventory costing millions. In fact, researchers estimate that 12,400 manufacturing, warehousing, distribution, fabrication and testing sites, as well as the production of 11,000 products, will be affected.

As thousands of Floridians evacuated the state, about one in six gas stations were out of fuel. That number jumped to 44% in the Tampa Bay area. And experts believe the fuel supply chain problems aren’t over: Most fuel supplies in Florida come from Texas and Louisiana, and if the Port of Tampa Bay — which provides “43% of the state’s fuel used by jets, airplanes, tractor-trailers and passenger vehicles” — remains closed, those supplies won’t be able to reach other parts of the state, hindering disaster response and recovery efforts.

Ways to help

So much tragedy often feels overwhelming, but there are things we can do. The American Logistics Aid Network (ALAN) has activated its disaster response pipeline once again. If you’re able to donate your time, equipment or money, you can help the people and communities affected by this storm with “logistics passion in action.”

Another worthy way to support those in need right now is through the American Red Cross. Give money directly to the charity to provide shelter and supplies to the survivors of Hurricanes Milton and Helene, or donate blood locally to free up resources.

By leveraging our knowledge and networks, supply chain professionals can play a vital role in coordinating relief efforts, addressing logistical challenges and facilitating the restoration of supply chains in the affected regions. Let’s come together to rebuild.

5 Ways to Boost Your Supply Chain Responsiveness

Wed, 09 Oct 2024 00:00:00 -0500

A combination of intensely competitive global markets, constantly evolving consumer demands and unsettling international geopolitical events means that manufacturers can no longer rely on conventional models to optimize supply chains. Instead, they need to redesign their networks and planning processes to be more responsive to modern customer requirements.

Investments in supply chain responsiveness protect a business from demand fluctuations and can deliver huge value in terms of efficiency and cost reductions. Increased responsiveness also can enable manufacturers to deliver more personalized and streamlined services, rather than just mass-produced products and potentially inconsistent delivery methods. Here are five steps manufacturers can take to boost their supply chain responsiveness.

1. Assess your company culture. If you are starting from a level of maturity based on manual processes and spreadsheet-based planning, the transformation will take some effort. Therefore, one of the first steps is to get executive buy-in into the transformation initiative. Next, consider company culture for data-sharing and collaboration. Research shows that manufacturers with multiple reporting channels and decision-makers battle to share information effectively. Leaders need the most accurate, up-to-date information to make timely decisions. And requirements for lengthy discussions and prolonged decision-making processes make it impossible to be agile and responsive. Company culture and executive processes must be aligned to the goal of supply chain responsiveness.

2. Define a goal. It’s hard to work toward a goal if you haven’t defined it. Determine what supply chain responsiveness will look like for your organization and what steps need to be taken to reach that status. Having a solid plan also makes it easier to involve other departments to support the goal of responsiveness for the whole organization.

3. Opt for efficient technology. Next you need to incorporate the technology and applications that will help you reach your goal. Technology vendors have developed tailored and niche supply chain solutions that support transparency and real-time visibility through the internet of things, artificial intelligence, blockchain and advanced analytics. You might be tempted to opt for different solutions for different parts of the process — such as forecasting, master production scheduling or collaboration — but that is not always the best strategy. Because of the collaborative nature and breadth of the transformation process, companies should look at applications that are part of a platform. A platform allows different groups within an organization to work together more cohesively and share data seamlessly.

4. Add more suppliers. Supply chain diversification or multi-sourcing involves sourcing a product, part or material from different suppliers. This means the demand can be split across multiple vendors to reduce risk and relieve pressure. Supply chain technology can help support strategic supply chain network design by determining optimal ways to add diversification without adding too much cost. In situations where it is difficult to work with more suppliers or expand supply capacity in other ways — and even in situations with a healthy amount of suppliers — it is important to cultivate supplier relationships with strong communication and real-time, accurate updates of supply problems to flag risk events and allow you time to develop and enact contingency plans.

5. Keep expanding the end goal. As you work toward supply chain responsiveness, monitor your progress and the incremental value delivered. Are you getting the expected value at each step of the process? Is your progress healthy or shortsighted? Are you ready for next steps? Make sure the goal engages all critical stakeholders and leverages an integrated and collaborative process supported by platform-based technology. Together, you can grow and be more responsive to supply and demand changes up and down the supply chain.

Take a moment to explore ASCM's CPIM certification. The program gives you the skills and competencies to develop an agile supply chain.

In the Aftermath of Helene and the Dockworkers’ Strike

Fri, 04 Oct 2024 00:00:00 -0500

Here in the United States, we’ve come to expect hurricanes to arrive in the late summer and early fall. Unfortunately, they’ve only been getting worse, and their damage is not only devastating because of the loss of human life, but also the catastrophic effects to local property and the broader economy.

Last week, Hurricane Helene made landfall in Florida as a Category 4 storm, with winds of more than 100 miles per hour. The storm continued through the Southeast into western North Carolina, killing more than 200 people (at the time of this writing) and bringing torrential floods and cataclysmic damage. The severity of the storm caught these communities off guard, and countless people are still struggling to access food, water and electricity, CNN reports.

Human life has also been indirectly affected, as the hurricane severely disrupted the supply chain for medical devices. “Baxter International, a health care and medical technology company, announced this week that it must close its largest plant in North Carolina due to flooding and destruction,” reports ABC News. The plant, located 60 miles out of Asheville, “primarily manufactures IV fluids and peritoneal dialysis solutions” and employs more than 2,500 people. Baxter leaders say they implemented their hurricane preparedness plan, evacuating workers and moving vulnerable products. However, “heavy rainfall and storm surges triggered a levee breach, which led to flooding in the facility,” ABC News continues.

Baxter partners have yet to experience a disruption to their supply chains, but that will quickly change if the facility remains closed for several weeks. In response, supply chain professionals are conserving materials — which are primarily used by cardiac, kidney and urologic patients — as much as possible. Unfortunately, because the area of the country affected by Helene is so large, it will be difficult for hospitals and other facilities to send patients in need of missing supplies to other medical centers.

And it’s not just medical devices that are under water. “Downpours at Spruce Pine, North Carolina, have taken offline the biggest known deposit of high-purity quartz, leaving the global tech supply chain potentially starved of an ingredient vital for making microchips,” Wired reports. Microchip shortages have already been a problem, and Spruce Pine produces about 70% of naturally occurring high-purity quartz. Experts say it’s possible that the stockpiling and contingency work manufacturers do in preparation for unforeseen disasters will delay any huge impact, especially if conditions improve sooner rather than later. If not, they may need to resort to lower-quality synthetics.

Meanwhile, the dockworker strike on the East and Gulf Coasts has thankfully been suspended, after the Biden Administration pressed both sides to reach a deal. “Employers, represented by the United States Maritime Alliance, have offered to increase wages by 62% over the course of a new six-year contract. ... That increase is lower than what the union had initially asked for, but much higher than the alliance’s earlier offer,” The New York Times reports. “The union said [its] 45,000 members would go back to work, with the current contract extended until January 15.”

Collaboration is key

These cascading effects continue to challenge supply chains, which have already been hit hard this year by an attack in the Red Sea, extensive drought in the Panama Canal, the tragic bridge collapse in Baltimore, the Canadian rail strike, unprecedented cybersecurity threats, food inflation — the list goes on. As our supply chain community continues to work out ongoing complexities, ASCM experts are here to help. First, we’ve just hosted a LinkedIn Live with veteran customs broker Robert Stein and ASCM Executive Vice President Douglas Kent. They offered critical insights to help you prepare for the next disruption.

Second, ASCM knows it’s crucial for supply chain organizations to work together.

Stay informed and prepare for what’s next on our social channels, including LinkedIn, X, Facebook and Instagram, where you can share thoughts, experiences and questions. It’s abundantly clear that disruptions will keep coming. We must support each other to ensure our global supply chains continue to function and thrive.

East Coast Dockworkers Threaten Strike: Supply Chain Impact Imminent

Fri, 27 Sep 2024 00:00:00 -0500

The world is watching as East and Gulf Coast dockworkers from the International Longshoremen's Association (ILA) prepare to strike October 1. The ILA, a union representing 85,000 people, is demanding sizable wage increases for its members and protection from future job automation. A strike would affect docks from Maine to Texas, accounting for nearly 60% of the U.S. shipping traffic and causing major disruptions in the supply chain.

“All activity loading and unloading cargo containers and automobiles would come to a standstill,” CBS News reports. Although ports along the East and Gulf Coasts, anticipating the strike, have been racing to unload cargo, ships with remaining cargo will be “moored at specified spots in New York Harbor or off the coast during the strike, or remain at sea until they can come in.”

This week, ASCM polled our LinkedIn community and discovered that 73% of supply chain professionals believe the strike is extremely or very likely to have a negative impact on their operations. Only 8% said the effects would not disrupt their networks.

Per Reuters, the Biden administration has been monitoring the negotiation between the ILA and the United States Maritime Alliance employer group but has not tried to broker a deal. Further, acting Labor Secretary Julie Su and the Department of Labor, following standard operating procedures, have been in touch with both sides for a month. Asked to step in, Su helped “hammer out” a deal during the recent West Coast port negotiations, for “a 32% pay increase over the life of the new contract” for that negotiation.

If the Biden Administration is not invited to aid in negotiations, President Biden could invoke the 1947 Taft-Hartley Act to force the dockworkers to return to work, but that’s not something he plans to do, reports The New York Times. Hopefully, the two sides will come to at least a tentative agreement, as was the case with the labor dispute for the Canadian railroads last month.

Although the specific terms of the ILA’s proposal aren’t public, reporting by The Times also suggests that the ILA is asking for a $5-per-hour raise for each year of the contract’s six-year term, while the USMX is offering a $2.50-per-hour annual increase. To put that into perspective, “East and Gulf Coast longshoremen with six or more years’ experience currently earn $39 per hour, up 11% since the start of their expiring six-year contract. Over the same period, inflation was 24%,” the Times explains.

West Coast longshore workers currently earn $55 per hour. For their part, the East Coast dockworkers’ unions have a lot of leverage to “secure raises and, at some ports, lucrative pensions and other benefits” because most goods “going in and out of the United States pass through marine ports,” and about three-fifths of cargo ships come through the East and Gulf Coasts. There’s no way that the West Coast ports will be able to absorb all or even most of these ships, if they are diverted, the Times continues. Plus, clogs on that coast would cause extended delays and significant freight price increases.

Preparing for the inevitable

Although the details of the crises are always different, the fact that there is “some crisis looming somewhere” feels inevitable in supply chains these days. This is why it’s more important than ever to understand the intricacies of our global networks by signing up for the Certified in Logistics, Transportation and Distribution (CLTD) designation. You’ll learn best practices along with the latest strategies and trends so you can lead in these key sectors. And you’ll also be on track to earn 25% more — something we can all agree is valuable right now.

Supply Chain Chaos Amplifies Food Inflation

Fri, 20 Sep 2024 00:00:00 -0500

Consumers have been struggling with high prices since the pandemic first shook supply chains in early 2020. Extensive traffic jams for cargo ships in the Suez Canal, unusually high demand for household goods, and the resultant severe — though short-lived — recession overwhelmed both industry and our economy.

Although global inflation has eased significantly from its peak in 2022, prices are still unusually high. Massive natural disasters, severe weather and many other effects of climate change are only making things worse: “Scientists and economists agree that rising surface temperatures have impacted yields — from vegetables and durable crops to even animal sources of protein — leading to a sustained increase in food inflation,” Business Today explains.

This week in the news, Supply Chain Dive reports on very dry conditions and a huge number of wildfires that are affecting sugarcane production in Brazil: “The ingredient’s prices have surged by 4.2% and the fires have disrupted the entire supply chain. … Around 100,000 hectares of sugarcane fields were burned from the end of August to early September.”

Meanwhile, Raizen SA, Brazil’s largest sugar producer, has lost much of its crop for the 2024-25 season, per Reuters. Fortunately, the burned crop can still be harvested, but the process must be completed on a much faster timeline so the sugarcane doesn’t diminish in quality. As of August 29, sugar prices were at a five-week high, Supply Chain Dive continues, and producers are concerned about how the crop will fare against future droughts, extreme heat and heavy rains.

Also in Brazil, futures for premium Arabica coffee beans are at their highest cost since 2011, reports Bloomberg, up 4.8% to $2.718 per pound because of the extreme drought. JM Smucker Co., parent company to brands including Folgers and Café Busto, raised prices already this summer; last month the company announced further hikes coming in early October. And fast-food chain Pret a Manger “scrapped its UK coffee subscription that gave customers as many as five drinks per day,” Bloomberg notes. "The coffee industry was already suffering from port congestion in several countries, global scarcity of containers, disruptions around the Red Sea, and disappointing crops in Vietnam.”

These higher costs for producers may even be emboldening some suppliers to cut corners on quality — to detrimental effects. According to The New York Times, “One dozen of 36 cinnamon products tested by a consumer group contained elevated levels of lead,” a contaminant that is especially deadly to children. After similar findings were discovered in cinnamon applesauce last year, the FDA even went as far as to suggest that “cinnamon had been intentionally adulterated with lead chromate, a powder used to stretch the valuable commodity and increase profits.” Whereas the applesauce itself is rigorously tested, the cinnamon addition may have been overlooked, demonstrating a lack of visibility in the supply chain for these products and a surge in risk for unsuspecting consumers.

The basics make the difference

Amidst this global supply chain turmoil, understanding the complexities of risk management is more crucial than ever. The 18^th edition of the ASCM Supply Chain Dictionary is now available, featuring hundreds of new and updated terms — from risk acceptance and risk analysis to risk tolerance and risk transfer. With more than 350,000 copies and downloads in circulation, the ASCM Supply Chain Dictionary is a key member benefit and the authority on all things supply chain for you and your team. Check out the latest edition today!

4 Micro-Steps to Digital Detox, Wellness and Wisdom

Tue, 17 Sep 2024 00:00:00 -0500

Last week in Austin, ASCM CONNECT 2024: North America brought together supply chain professionals from around the world for three days of insightful keynotes, educational breakout sessions, valuable networking and a vibrant expo. The conference reinforced the importance of supply chains — highlighting their impact on nearly every aspect of our lives — while showcasing inspiring industry advancements.

The event kicked off with a keynote from Arianna Huffington, renowned author and business leader. She shared the concept of "micro-steps" to achieve greater wellness and wisdom. A micro-step is a small, achievable task that contributes to a larger goal. It's a way to break down a complex endeavor into manageable pieces. Specifically, Huffington suggested the following 4 strategies:

1. Embrace downtime. “Downtime is not a bug; it’s a feature,” she said. “Periods of rest, relaxation and leisure give our bodies and minds time to recharge. Downtime is what makes us most productive and most successful.”

2. Turn off all notifications. Take addictive apps off your home screen; use them when you want to, but don’t let them come to you. Creating these kinds of boundaries makes it easier for you to stay focused and on the right track.

3. Separate your working day from your sleep. Huffington advised selecting one micro-step you can take as a transition to sleep, such as a warm shower, listening to soothing music or reading a book.

4. Create a personal reset. Stress may be inescapable, but cumulative stress can be avoided. Create your own, individualized reset: images of your family or a pet, a piece of music you enjoy, or inspirational quotes. Then, whenever you feel stress building, you can turn to your reset.

“Anything that tries to be ‘always on’ will eventually burn out,” she stated. “To be sustainably productive and effective, we need to take care of ourselves.”

Personalizing Customer Strategy in the Age of AI

On day two, attendees heard from keynote David C. Edelman, a marketing expert and senior lecturer at the Harvard Business School, about personalizing customer strategy with AI. He emphasized the importance of harnessing the power of data to create tailored solutions that meet the specific needs of individual customers.

Edelman argued that personalization is about unlocking, augmenting and integrating scattered data across the supply chain ecosystem. By analyzing this data using AI, supply chain organizations can gain valuable insights and make more data-driven decisions.

While acknowledging the risks associated with AI, such as security and privacy concerns, Edelman emphasized that they should not be used as an excuse to avoid adopting AI technology. “Don’t downplay the risks, but don’t get frozen either,” he said, “as that’s a strategic risk in and of itself.”

He also stressed the importance of delivering value to customers rather than simply manipulating them, emphasizing the need to take their perspective and understand their needs.

Edelman concluded by emphasizing that AI democratizes data, which empowers individuals on the front lines. “AI doesn’t have to be from the center; it doesn’t require a holistic technology overhaul,” Edelman explained. “Rather, individuals can experiment and innovate.”

Guenther Steiner on Innovation, Risk and Leadership in Motorsport

Guenther Steiner, a renowned figure in the world of Formula 1, took part in a captivating fireside chat with ASCM CEO Abe Eshkenazi on day three of ASCM CONNECT. He discussed the highly competitive and ever-evolving nature of F1, emphasizing that relying on traditional methods is no longer sufficient to stay competitive. To succeed, teams must embrace the latest tech and be willing to take calculated risks.

To achieve these goals, Steiner emphasized the need for open and honest communication with team members. “The best way to convince people of a new idea is to explain it to them openly, honestly and fairly to bring them on board,” he noted.

He also emphasized the importance of setting expectations and prioritizing time management in the fast-paced world of motorsport, as well as keeping a focus on addressing challenges proactively.

Further, he explained that effective leadership involves asking strategic questions and supporting team members by giving them ownership of their work — especially those who are truly passionate about what they do. This, in turn, leads to more valuable contributions, greater development and improved performance. “When things go right, it’s easy to be the boss,” he admitted. “It’s a lot easier to lead the team that wins the championship than the one that comes in last.”

ASCM Honors the Best of Supply Chain

The annual ASCM Awards of Excellence recognize outstanding contributions to supply chain management, honoring corporations and individuals who demonstrate exceptional performance, innovation and dedication to advancing the industry.

For the corporate awards, Infineon was first celebrated for a supply chain transformation based on ASCM principles. Next, Blue Ocean Corporation was recognized for its commitment to empowering professionals around the world through ASCM education. And CHEP received an award for its pioneering sustainability solutions.

ASCM also recognized three individuals for their exceptional contributions to the supply chain field. First, Kinaxis thought leader Polly Mitchell-Guthrie was honored for driving innovation and digital transformation. Then, Jason Tham of Nulogy was recognized for his leadership in diversity, equity and inclusion. Finally, Electra’s Kimberley Duarte, CSCP, was honored for building and scaling an entire supply chain function from scratch using ASCM principles.

The Awards of Excellence program will open for 2025 entries next spring. Learn more at ascm.org/awards.

A Hub of Supply Chain Excellence

The dynamic Innovation Hub was a highlight of ASCM CONNECT, offering attendees a glimpse into the exciting innovations shaping the industry. From ASCM’s valued exhibitors, people discovered the latest strategies and tools, advancements in logistics management and traceability solutions, and insights into how to improve efficiency and visibility throughout the supply chain.

Plus, the Innovation Hub showcased the world of digital innovation and artificial intelligence, demonstrating how these technologies are transforming the supply chain landscape. Attendees experienced the future of automation and robotics, witnessing firsthand how these advancements are driving efficiency and productivity.

For a little fun with their learning, many participants also took part in the famous Beer Distribution Game, a unique opportunity to take on the dreaded bullwhip effect. And speaking of fun, ASCM was proud to partner with the Austin Humane Society for a heartwarming moment for some playtime with adorable — and adoptable — dogs and puppies. From cutting-edge exhibitors to inspiring and interactive activities, the Innovation Hub provided a memorable experience for all.

F1 Simulator Thrills Attendees

Also in the Innovation Hub, attendees had an exciting opportunity to step into the world of Formula 1 racing in an ultramodern F1 simulator. This exclusive experience was a highlight of the conference, drawing in seasoned racing enthusiasts or attendees who were simply curious to try something new. Everyone had a blast testing their racing skills, feeling the adrenaline rush and experiencing the thrill of Formula 1 firsthand!

Start Small for Big Results with AI

Fri, 13 Sep 2024 00:00:00 -0500

This week at ASCM CONNECT, I had a great time connecting with so many engaged and inspiring supply chain professionals in Austin, Texas. We explored numerous trending supply chain innovations, but none were more prevalent than artificial intelligence. AI’s transformative potential spans demand forecasting to inventory optimization to risk mitigation and so much more. It's clear that AI is no longer a futuristic concept; it's a reality that’s reshaping the way we work and compete every single day.

Keynote speaker David C. Edelman of Harvard Business School delved into AI with a focus on helping supply chain organizations personalize customer strategy. He discussed three essential skills in the world of AI. They include:

Curiosity. AI offers supply chain professionals a wealth of possibilities, but to truly harness its power, we must be curious. By asking the right questions and exploring different avenues, users can uncover valuable insights and unlock the full potential of AI applications.
Understanding data. Supply chain professionals must grasp the full range of data available both within and outside their organizations. This includes understanding data types, sources and reliability. By having a clear understanding of the data landscape, you can make informed decisions and ensure AI models are based on accurate and relevant information. This knowledge also helps users identify potential data security issues and protect sensitive information.
Unwavering accountability. You can’t just have AI give you an output and then run with it. Edelman urged: “There are numerous optimizations that need to happen to help mitigate potential risks of bias, hallucinations and other challenges. You must be accountable for your AI outputs and take responsibility.”

The next day, KPMG’s Samantha Young shared her expertise to help attendees "focus on the AI short game.” She noted that, as companies advance their long-term efforts, compound volatility causes stress in the near term. Mastering the short game requires agility to make complex decisions quickly, and AI is a key enabler. For instance, Young says it can “de-risk” single sourcing by simulating alternate supply scenarios, mitigate productivity risk by predicting employee attrition, and reduce shelf-life loss by refining shipments for sell-through.

Another highlight was the session featuring HP’s Pedro Neto, Ph.D., and Yuangie He, Ph.D., professor at Cal Poly Pomona. After an interactive discussion with attendees, some fascinating discoveries were revealed about where supply chains really are with AI today. “Some companies are seeing efficiency gains,” Neto says, “while others are still figuring out how to translate AI hype into real results.”

These speakers also recommend starting small, saying, “With the right steps, we can turn potential into reality.” Specifically, they suggest focusing on practical use cases such as demand forecasting and inventory optimization, then building on those successes.

And speaking of the many benefits of small steps, keep an eye out for ASCM’s Supply Chain Signals next week, where you can read all about my chat with Arianna Huffington, renowned author and business leader. She shared the concept of "micro-steps" to achieve greater wellness and wisdom, and her strategies really resonated with attendees. I’m sure you’ll enjoy learning about them as well!

Your first small step

Given the potential of AI in reshaping the supply chain landscape, it's imperative for you and your team to stay ahead of the curve. Position your organization for success in our AI-driven future with ASCM's comprehensive resources. Start by reading 7 Things Supply Chain Professionals Need to Know About AI, a collection of ASCM content curated by Editor-in-Chief Elizabeth Rennie, which provides valuable insights into essential AI trends and applications. Then, take the next step and sign up to earn the ASCM Supply Chain Technology Certificate. Upon completing the program, you'll be ready to tap into the power of AI for innovative solutions and insights that will enable you to truly transform and advance your supply chain.

Knowing When — and When Not — to Automate

Fri, 06 Sep 2024 00:00:00 -0500

The iconic Star Wars droids R2-D2 and C-3PO have captured imaginations for decades, highlighting the potential of robots to perform tasks efficiently and reliably and inspiring dreams of a future where technology seamlessly integrates with our daily lives. In supply chain, robotics and automation are becoming increasingly prevalent, offering practical solutions to a wide range of challenges. From automating mundane tasks to enhancing precision and efficiency, these technologies are transforming the way people work.

In the news this week are two interesting examples: First, Amazon is now using a drone-enabled shipping process to transport products to fulfillment centers; plus, shipping company Maersk is investing in autonomous vessels to move goods more efficiently and with less fuel. Inbound Logistics lists numerous benefits of supply chain automation, including:

Enhanced inventory visibility to help companies avoid overstocking products at risk of growing obsolete or understocking popular items and losing sales
Meeting sustainability goals by streamlining vehicle routing and scheduling, making sure trucks on the road are at capacity, and reducing the potential for emissions.
Boosting decision-making with digital twins that help supply chain professionals simulate key events
AI-enabled solutions that augment data insights and enable early adopters to improve logistics costs by 15% and inventory levels by 35%, according to the article

These automation options can be especially enticing for industry leaders who want to save time and money by cutting out the inefficiencies of human labor. But more automation doesn’t necessarily equate to more productivity: “This new environment offers fewer opportunities to automate processes in their entirety and makes them more dependent on the ingenuity and flexibility that human workers provide,” Industry Week notes. The crucial solution, then, is to integrate the automated elements — robots, for example — with the existing human workers who control them. In fact, cobots, or collaborative robots, are the fastest-growing robotics segment.

This concept is being explored at Parker-Hannifin, which uses a hierarchical approach to deciding whether automation makes the most business sense:

Simplify the process as much as possible.
Consider an unpowered mechanical solution.
Consider the programmed robotic option.

This method also prevents wasted energy and resources because the company isn’t automating an inefficient process. Better still, it ensures the business continues to innovate and evolve.

Educate, then automate

Informed and effective supply chain professionals know how and when to choose the right process for their organization’s digital transformation goals. That’s where the ASCM Supply Chain Technology Certificate comes in. This credential helps you build a working knowledge of emerging technologies and how they may affect your networks, helping you propose innovative solutions, evaluate benefits and risks, and know which technology will improve supply chain performance and which will waste resources. Use code LEARNANDSAVE when you sign up for this certificate and save 15% today!

“Greenhushing” and the Quiet Commitment to Sustainability

Fri, 30 Aug 2024 00:00:00 -0500

For the past decade, the focus on sustainability standards, “green” initiatives and eco-friendly policies have skyrocketed as the effects of climate change — including natural disasters and food insecurity — have been more catastrophic than ever. Companies like Lego and La-Z-Boy have shown their commitment to circularity and corporate responsibility through initiatives like recycling plastics, reducing packaging and rainwater collection. Unfortunately, the ESG standards that guide these innovative environmental policies are undergoing a backlash, especially in the U.S. This, despite the fact that 80% of consumers cite sustainability as an important consideration in their purchase of a new product.

Earlier this year, a group of U.S. investors, including J.P. Morgan, BlackRock and State Street, left the Climate Action 100+coalition, citing concerns about antitrust laws, reported Reuters. Much of this backlash is politically motivated, suggests The New York Times, with certain politicians “claiming that banks and asset managers were supporting progressive politics with their climate commitments.” Some of the companies involved in the coalition faced real consequences: A key focus of the Climate Action plan is to adopt policies that require companies — including Exxon Mobile — to use fewer fossil fuels. Certain states have banned banks from doing business with the state if they distanced themselves from fossil fuel companies, the Times notes. Europe, for its part, has resisted the anti-ESG sentiment that’s common in the U.S., Reuters also reports, “due to greater political and consumer support for greener products and a swathe of regulations that underpin the operations of the finance industry and companies in the real economy.”

Despite these political implications, it’s still true that sustainable policies can be better for business than practices that rely on the use of fossil fuels, for many reasons, including less reliance on volatile oil and raw material prices and an uptick in customer loyalty. That may be why companies are including sustainability goals as much as ever in their financial reports and disclosures — they’re just talking about ESG less publicly, a phenomenon called “greenhushing,” according to the Wall Street Journal. About 97% of the mentions of ESG and sustainability “were related to financial disclosures and earnings reports… [because] many companies recognize that investing in sustainability is important for long-term value creation,” the Journal reports. But to block the ESG-related backlash from investors, they’re avoiding focusing too much on ESG standards, “overstating green claims or appearing to prioritize sustainability initiatives over profit,” the Journal notes. On the other hand, terms like “clean air, clean water, and economic opportunity” —the real goal of the environmental and sustainability guidelines — are as prevalent as ever.

According to the Harvard Business Review, “progressive companies can advance sustainability with suppliers by shifting from short-term, price-focused transactions to a long-term, trust-based relationship.” The HBR uses King Arthur Baking as an example: the ESOP is collaborating with “milling and farmer partners to convert from conventional to regenerative agriculture” and working with competitors in the meantime to provide support and benefits to farmers through lower input costs and improved soil health, “which over time will yield improved margins, more nutrient-rich wheat, and surety of supply for King Arthur. It will also lead to lower carbon emissions resulting from less tilling of the soil.” The collaborative effort — and buy-in for the results — makes this a meaningful commitment to addressing climate change. Puma follows a similar ethos, HBR notes, ensuring that company leadership is invested in meeting sustainability goals, because their bonuses depend on it. The policy is working: “Puma’s carbon emissions have come down by almost one third while revenues have doubled and gross margins have expanded over the past seven years.”

Maintaining environmental standards

As a signatory of the UN Global Compact, ASCM supports and advocates for the 17 Sustainable Development Goals (SDGs) adopted by businesses and nations worldwide. The open-access ASCM Enterprise Standards for Sustainability are mapped to the SDGs to support your business’s efforts to embrace the culture of social responsibility and showcase supply chain excellence.

To become more familiar with the standards and the sustainability guidelines that are essential for the modern supply chain, enroll in our two-day course, Building a Sustainable Supply Chain. Another option is to become an ASCM Corporate Member to receive a complementary one-day sustainability workshop that includes an assessment and roadmap for improvement. Learn more today!

Supply Chain Optimism Grows as Canadian Rail Strike Nears Resolution

Fri, 23 Aug 2024 00:00:00 -0500

Earlier this week, the news was grim for North American economies, as a labor dispute between Canada's two major railroads escalated to a full lockout. With nearly 10,000 unionized workers off the job, serious supply chain concerns were raised. At the time of writing, the Canadian Pacific Kansas City (CPKC) situation is still unresolved, but Canadian National Railway (CN) employees have begun returning to work.

The two railways function as crucial arteries, connecting North American trade corridors and ports. Billions of dollars worth of goods and commodities routinely traverse these rails, facilitating trade between Canada, Mexico and the United States.

“About 6,500 containers enter the United States by rail from Canada every day,” according to The New York Times. “That includes cargo from Asia and Europe that lands in Canadian ports.” In fact, CN's network stretches south all the way to New Orleans, and CPKC's network links to the U.S. ports of Corpus Christi and Gulfport, plus Tampico and Lázaro Cárdenas in Mexico, notes Reuters.

Shutdowns like these have a domino effect on several key sectors:

Agriculture: The movement of everything from wheat and corn to fertilizer and meat can be severely hampered. Grain elevators will overflow, jeopardizing harvests as farmers struggle to store their crops. This can disrupt global food supplies.

Manufacturing: Many companies rely on rail to transport raw materials and finished products. A prolonged shutdown can hinder production or force closures, influencing everything from automobiles to consumer goods.

Energy: The movement of oil and other energy resources can be disrupted, potentially affecting prices and energy security.

While the trucking industry can help take up some of the slack, it would not be able to fully replace rail capacity. Trucks can’t handle bulk commodities and are significantly more expensive to operate, which often leads to higher transportation costs and product shortages.

Of course, the longer any lockout goes on, the worse the economic consequences will be: “Businesses and families across the country feel the impact," Jay Timmons, president and CEO of the National Association of Manufacturers, said in a statement earlier this week. "Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions.”

Get ready for resilience

The threat of a Canadian rail strike once again underscores the fragility of our global supply chains. It's more critical than ever for supply chain professionals to build resilience, which is why ASCM created the Supply Chain Resilience Certificate. The program provides comprehensive training on risk management, contingency planning and other key strategies to help your organization handle ongoing complexity and disruption.

To learn more, don’t miss the educational session Fundamentals of Operational and Strategic Resilience Featuring the ASCM Resilience Certificate at ASCM CONNECT: North America next month in Austin. It’s part of the Stability, Resilience and Agility track, which includes educational sessions that explore proactive decision-making, optimizing workflow, forecasting with confidence and lots more. Join us at ASCM CONNECT and start your critical journey toward essential supply chain resilience.

Maximize Shop Floor Efficiency with Digital Visualization Boards

Wed, 21 Aug 2024 00:00:00 -0500

Editor’s note: This blog post is adapted from the research article "Fitting digital visualization board transitions to shop floor tasks," published in the Journal of Operations Management. The article's findings have been translated into practical insights and actionable advice for manufacturing executives seeking to optimize their operations through the implementation of digital visualization boards.

Digital visualization boards (DVBs) offer manufacturers a powerful tool for enhancing operational efficiency, reducing costs and gaining a competitive edge. By providing real-time data and insights into production processes, these interactive displays enable businesses to make informed decisions, optimize resource allocation and identify areas for improvement.

Integrating DVBs into a manufacturing environment requires a delicate balance between technology and human factors. Simply installing a board isn't enough; it must be designed to meet the specific needs of shop floor workers. This involves understanding their tasks, challenges and how they interact with the information presented on the board. It also includes providing relevant information, enabling easy data access and facilitating communication.

Access to up-to-date information is essential for effective decision-making. DVBs should display real-time data on production metrics, machine status and inventory levels. Shop floor conditions can change rapidly, so DVBs should be flexible enough to adapt to new situations and display different types of information as needed. And to provide a comprehensive view of operations, DVBs should integrate with other enterprise systems such as enterprise resource planning and manufacturing execution systems. Finally, the board's design should be intuitive and easy to understand, even for workers with limited technical expertise.

The role of technology and management

To effectively implement DVBs, a combination of technology and management expertise is essential. Technology provides the tools and infrastructure, while management ensures alignment with business goals and user needs.

Technology considerations include:

Data collection: Robust data-collection systems are crucial for feeding accurate information to the DVB.
Data visualization: Effective visualization techniques are essential for presenting complex data in an easily understandable format.
Hardware and software: Choosing the right hardware and software components is crucial for optimal performance and scalability.

Management considerations include:

Change management: Implementing DVBs requires effective change management strategies to overcome resistance and ensure user adoption.
Training and support: Providing comprehensive training to shop floor workers is essential for maximizing the benefits of the DVB.
Continuous improvement: Regularly assess the board's effectiveness and make adjustments as needed.

Several challenges can hinder the successful implementation of DVBs. Inaccurate or incomplete data can render the DVB useless. Shop floor workers may be resistant to new technology, requiring effective change management strategies. Hardware or software issues can disrupt the board's operation. And integration with existing systems can be complex and time-consuming. To overcome these challenges, manufacturers should invest in data quality initiatives, provide comprehensive training, and establish robust support channels.

Measuring the impact

To evaluate the effectiveness of a DVB, it's essential to track key performance indicators (KPIs) such as production efficiency, inventory turnover, machine uptime, quality defects and worker satisfaction. By monitoring these metrics, manufacturers can assess the impact of the DVB on shop floor operations and identify areas for improvement.

To maximize the benefits of DVBs, be sure to collaborate with workers to understand their needs and preferences. Begin with a pilot project to test the concept before full-scale deployment. Regularly assess the board's effectiveness and make adjustments as needed. Ensure workers are properly trained on how to use and interpret the information on the board. Track KPIs to evaluate the impact of the DVB on shop floor operations.

By following these guidelines and addressing potential challenges, manufacturers can harness the power of digital visualization boards to improve efficiency, reduce waste and enhance overall shop floor performance.

Learn more about the Journal of Operations Management here.

Empowering Consumers Through Supply Chain Education

Fri, 16 Aug 2024 00:00:00 -0500

Consumers are bombarded with information. Yet the most crucial data — how the products they buy are made, delivered and sustained — is too often concealed. A staggering amount of information exists within supply chains, detailing everything from sourcing processes to labor practices to environmental impact. However, this data is regularly locked away in isolated systems. This lack of transparency hinders informed buying decisions, leaving consumers in the dark.

By 2030, the manufacturing industry will generate a massive 4.4 zettabytes (1 trillion gigabytes) of data worldwide, a new report by ABI Research reveals. It describes operational technology data as the “lifeblood of industrial enterprises” because it holds critical information about hazardous conditions, quality control or energy consumption, versus more generic data. “Operational technology data in enterprises is crucial for ensuring safety and maintaining business operations,” the report asserts.

Shockingly, a mere 5% of manufacturing data is actually used, due to “high friction between data siloes,” the report continues. In other words, manufacturers, vendors, suppliers and other key partners are not sharing information in a way that makes the data functional for companies or consumers.

This is also the takeaway from a recent Manufacturing.net article: “Across industries, companies are feeling pressure to digitally transform, which often gets misconstrued with simply generating an unprecedented amount of data. However, for manufacturers, a surprising truth exists: They are already sitting on a treasure trove of data.” The crucial next step lies in making use of it to drive value and make a sustainable positive impact.

Here at ASCM, we’ve known about the existence of these large caches of supply chain data for a long time. Companies either can’t — or won’t — share the information they have with those who need it. We also know that knowledge is power. That's why ASCM is launching a groundbreaking initiative to shed light on the inner workings of supply chains, empowering consumers to make choices that align with their values. This is the focus and mission of our brand-new, six-part docuseries, The Chain: to educate patients and consumers about how supply chains work and how the choices they make affect so much more than they probably realize. And, in turn, we aim to motivate businesses to share their data proactively in order to foster a more transparent and responsible global marketplace.

The full series will be released soon, but you can get a sneak peek next month at ASCM CONNECT 2024: North America. In addition to the unparalleled education at this premier supply chain conference, we’ll be sharing an episode that you don’t want to miss. In the meantime, be sure to listen to the first episode of our newly relaunched podcast, also branded “The Chain,” in which I interview representatives from the docuseries production company. You'll get a fascinating behind-the-scenes account and discover how our docuseries will help create a future where transparency, sustainability and consumer empowerment are the norm.

10 Reasons Why Utility Supply Chains — and Yours, Too — Needs a CMMS

Wed, 14 Aug 2024 00:00:00 -0500

Utilities are essential services that are necessary for daily life and business operations. They typically refer to the basic infrastructure needed to function in a modern society: electricity, water, natural gas, telecommunications, sewage and more. In utility supply chains, the transfer of products and services from provider to the customer is critical. Many firms are turning to a computerized maintenance management system (CMMS) to maintain smooth operations and maximize productivity.

A CMMS is a sophisticated software tool that helps firms streamline their maintenance operations. It enables them to identify and manage assets, plan preventive maintenance, track equipment performance and provide analytical reports. A CMMS can also increase supply chain dependability, reduce downtime and assist firms in meeting the demands of today's competitive market. Following are some key benefits:

1. Better visibility. A CMMS delivers real-time data and analytics that provide a complete picture of the whole supply chain. You can use this visibility to identify bottlenecks, maintain inventory levels, make educated decisions and improve the overall flow of utility supply chain management.

2. Reduced downtime and increased life. By creating preventive maintenance programs and tracking equipment performance, equipment has a longer lifespan and higher overall production capabilities.

3. Lower maintenance costs and more efficiency. A CMMS enables users to manage maintenance operations more efficiently, track resource use and optimize maintenance schedules.

4. Heightened productivity. Users can leverage a CMMS to improve workflows, automate operations and eliminate manual paperwork. This can raise employee productivity by minimizing their administrative duties and enabling them to concentrate on essential responsibilities.

5. Targeted maintenance. Companies can use a CMMS to better prioritize utility asset management jobs based on their criticality and condition. This targeted strategy guarantees that resources are appropriately used and maintenance efforts are directed where they are most required.

6. Increased safety. Users prioritize safe working environments by ensuring that equipment is examined, maintained and repaired regularly. This decreases the possibility of accidents and guarantees that safety requirements are followed.

7. Risk mitigation. By tracking equipment performance and maintenance history, a CMMS helps firms identify and handle issues proactively to reduce the risk of interruptions and delays.

8. Control of suppliers and vendors. A CMMS provides a centralized platform for managing suppliers and vendors, helping users more effectively measure performance, track delivery schedules, and support good communication with suppliers and vendors.

9. Spare parts inventory management. By tracking stock levels, pricing and shipping, a CMMS helps ensure utility supply chains have the proper components on hand. This, in turn, decreases downtime and boosts efficiency.

10. Cybersecurity. Cyberattacks are a key problem for firms in today's digital era. To reduce threats, a CMMS includes features such as data encryption, user access limits and frequent upgrades.

While this article primarily focuses on utility supply chains, the principles and benefits can be applied to virtually any industry. By centralizing maintenance operations, optimizing resource allocation and providing real-time data, a CMMS empowers organizations to enhance efficiency, reduce costs and mitigate risks across the supply chain. From manufacturing and transportation to health care and retail, businesses of all sizes and types can leverage a CMMS to improve asset management, streamline workflows and drive overall operational excellence.

Lindsay Walker is marketing manager for NEXGEN, a Sacramento-based computerized maintenance management system and asset management software provider. She may be contacted through nexgenam.com.

7 Olympic-Inspired Skills to Raise Your Supply Chain Game

Fri, 09 Aug 2024 00:00:00 -0500

For the last two weeks, the Olympic Games have showcased the pinnacle of human athleticism — a blend of physical prowess and mental fortitude. But beyond the medals and the glory, these elite athletes possess a unique set of skills that are directly transferable to the high-stakes world of supply chain management. To gain deeper insights, I recently spoke with Mike Donohue, senior vice president of global sales at conversation cloud platform Gupshup and a former Olympic-level rower. Donohue's journey from the rowing basin to the boardroom offers valuable lessons for supply chain professionals. Here are the seven key transferrable skills he uses every day:

1. A resilience mindset. The most important quality for any competitive athlete is their mindset. “As an athlete, you learn to push through physical and mental barriers, which is also crucial for navigating the complexities of the business world,” Donohue explains. “The resilience developed through rigorous training and competition helps leaders stay composed under pressure, maintain a long-term vision, and inspire their teams to overcome challenges and achieve their goals.”

2. Teamwork. As a competitive rower, Donohue was part of a team of people who had to understand the importance of individual contributions while synchronizing or recalibrating their actions based on each other's behaviors. In business, Donohue prioritizes a similar culture of teamwork — an approach that also extends to partners, where building strong relationships is essential.

3. Effective goal-setting. Every supply chain professional knows that it’s crucial for leaders to dissect business processes and continuously monitor performance. The same is true in sports, where athletes break down their training into specific, measurable goals.

4. Stress management. There’s no question that competing on the field, in an arena or on the open water is stressful. Managing anxiety is crucial for staying calm enough to reach the finish line. Donohue stays grounded by keeping his mind on the bigger picture; supply chain professionals can use that advice too. Even when a discrete situation feels insurmountable, staying focused on the greater outcome can keep you on track.

5. Logistics and coordination. In both sports and supply chain, the job requires “meticulous planning, precise execution and seamless communication,” Donohue says. “In rowing, every team member's role and timing must be perfectly aligned to achieve optimal performance. Similarly, in business, each department and team must function in harmony to ensure efficiency and reliability.”

6. Data-driven decision-making. Data is the lifeblood of modern business. Its power to inform strategic decisions is undeniable. For rowers, this involves analyzing data on technique and performance to help optimize training and improve results; in business, data-driven decisions enhance efficiency and drive growth.

7. Continuous improvement. Athletes keep getting faster and stronger, beating old records time and again. They know that, in order to compete, they must constantly improve. In supply chain, it’s important for leaders to regularly review processes, seek feedback and implement incremental change. “By fostering an environment where innovation and improvement are valued, we can enhance our operations, drive efficiency, and achieve sustained growth,” Donohue urges.

Become a supply chain champion

Call me biased, but I think every athlete I’ve watched in the Paris Olympics this summer would have a fantastic second career in supply chain. Whether you’re making a professional pivot or looking to advance the supply chain career you already love, make a plan to attend ASCM CONNECT 2024: North America next month. One event that’s sure to be a winner is our Masterclass Series on Sunday, September 8, right before the official start of the conference. Engage in interactive exercises and collaborative learning to enhance your skills and build knowledge in sustainability, leadership, mentorship and supply chain transformation. Pre-registration is required, so secure your spot today for just $199!

Demand Better: Leading the Way in Supply Chain Ethics

Fri, 02 Aug 2024 00:00:00 -0500

In an ideal world, business leaders would have deep knowledge of every aspect of their supply chains — from where materials are first sourced to where waste is ultimately disposed. And they would unfailingly strive for ethical, sustainable practices. That effort would of course include the conditions of factories and the experiences of the employees who work there. Unfortunately, we don’t live in a perfect world, and this too often leads to devastating consequences.

To be clear, most organizations aren’t intentionally unethical; many executives have guidelines and inspections in place to investigate supply chain abuses, reports the New York Times. Factories pay social auditors to visit their facilities, during which time the observers evaluate corporate paperwork and interview workers and managers. They look for anything that might be amiss: unsanitary workstations, underpaid or underage employees, illegal chemicals, unsafe conditions, and the like. But the inspections are short-lived and, crucially, factory managers know in advance when the audits are happening, giving them the chance to “stage-manage the interviews,” the Times continues.

There are two circumstances working against these ostensibly good intentions: First, businesses seek to profit and serve their shareholders; in other words, finding ethical violations costs real money to clean up. Second, auditors are beholden to the companies that hire them. They’re not even allowed to publish their findings. What the Times story concludes, therefore, is that commercial entities can’t be trusted to regulate their own business systems.

It’s clear that improved cooperation is crucial for protecting workers, and that’s one goal of the recently announced U.S. Department of Commerce Indo-Pacific Economic Framework for Prosperity Agreement Relating to Supply Chain Resilience. Known as the IPEF Supply Chain Agreement, this project creates three monitoring bodies: the Supply Chain Council, the Crisis Response Network and the Labor Rights Advisory Board. Together, they will “facilitate closer cooperation” among the 14 IPEF partners countries: Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam.

The aims of the Agreement are to strengthen the resilience and competitiveness of critical supply chains, better prepare for and respond to supply chain disruptions that pose a risk to economic prosperity, and strengthen labor rights and raise up workers across the regions. The Labor Rights Advisory Board, in particular, “brings together workers, employers and governments at the same table to strengthen labor rights and workforce development across regional supply chains. As this regulatory body matures, it should be a powerful tool in safeguarding workers worldwide by making labor abuses easier to find and eliminate.

Create visibility to build strength

It’s imperative that supply chain professionals make ethics a central piece of their operations. Take the next step today by reading two insightful articles from ASCM’s blog:

7 Strategies for Confronting Modern Slavery offers a clear, implementable, multi-faceted approach to ensuring fair labor practices in your networks.
Corporate Social Responsibility: A Cornerstone of Modern Business uses real-world examples to highlight why social responsibility is essential to business success.

The expert opinions in these articles will help you learn more about why business leaders must make supply chain ethics a priority — and how to get started. Though government support is necessary and welcome, it’s up to our global supply chain profession to highlight and eradicate abuses within our own chains.

The Chain: A Supply Chain Podcast About Connection

Tue, 30 Jul 2024 00:00:00 -0500

Supply chains — the movement of goods and resources worldwide — are more than just a network of businesses. They are invisible networks that connect us all. With this in mind, ASCM is excited to uncover the mysteries, discuss innovations and share the hidden stories of this complex system with the launch of our supply chain podcast, The Chain.

The Chain, hosted by ASCM CEO Abe Eshkenazi, will cover the latest supply chain news and trends — but then we’ll dig deeper. We will help everyone understand how supply chains impact the world around them.

What you can expect from The Chain

Eshkenazi will interview supply chain business innovators and leaders. Guests will share how micro and macro global events affect the vast migration of goods and services. Their stories will touch on how products are made from the factory floor and shipped to your door and everything in between. You’ll learn about technological transformations including the impacts of AI, the importance of supporting a sustainable supply chain and how to build the supply chain of the future.

How we built The Chain

The idea for The Chain podcast began with ASCM’s initial journey into the supply chain podcast world. In 2020, we helped launch The reBound with cohost Bob Trebilcock of Supply and Demand Chain Executive. The reBound explored the issues facing supply chain professionals as they navigated the pandemic. Supply chain specialists joined Eshkenazi and Trebilcock to discuss topics such as diversity, equity, and inclusion; making sense of blockchain; and more.

Since the last episode of The reBound aired in April of 2024, we’ve partnered with WAG Entertainment to bring the power of supply chains to the screen. Coming soon to select streaming services, ASCM presents the docuseries The Chain. The Chain features compelling stories about how everyday products and services are made, processed, shipped and stocked so we get what we need when we need it.

The Chain: From visual to audio

The story of supply chains and the people who drive them cannot be contained in just one entertainment medium for one specific audience. We worked closely with the producers at WAG Entertainment and learned how important it is to raise supply chain awareness for everyone.

Episode one of The Chain podcast series is dedicated to the producers of its namesake, The Chain docuseries. You’ll meet the WAG Entertainment team and hear how working on the docuseries opened their eyes to the hidden world of supply chains. Learn how they made the docuseries, the stories it presents and the communities influenced by our global supply chains — and why we must all understand the intricacies of this system to create a better world.

A supply chain podcast for everyone

The Chain podcast uncovers the hidden truths about supply chains from the professionals who know them best. Whether you work in supply chain management or are simply fascinated by how products get to store shelves or your doorstep, this podcast is made for you.

Can’t wait for The Chain podcast? Listen to The reBound on your favorite podcast platform. Don't miss the live recording of The Chain podcast at ASCM CONNECT 2024: North America when ASCM CEO Abe Eshkenazi talks with Richard Crawford, host and creator of the eco-travel show, Leave No Trace.

Companies Continue to Underestimate Cyber Risk

Fri, 26 Jul 2024 00:00:00 -0500

It’s the stuff of summer blockbusters and paperback novels: One small cybersecurity glitch sets off a chain reaction of computer failures, flight delays and medical emergencies, not to mention freight disruptions and manufacturing outages. This isn’t a fictional plot point in the latest thriller; it's all too real.

Last week, a software update from cybersecurity firm CrowdStrike went horribly awry, crashing Microsoft operating systems and causing the largest information technology (IT) outage in history, CNN reports. “Because CrowdStrike’s security software is running on countless individual computers all around the globe, the update that got pushed to those devices caused them all to shut down, virtually simultaneously.” The networks are so interconnected that one outage creates a domino effect. Ironically, many of the servers that contain information needed to get these systems working again were themselves caught in a cycle of crashing and rebooting, the CNN story continues. And each computer affected by the error had to be manually rebooted before the software could be deleted.

The CrowdStrike malfunction caused disruptions at U.S. and global ports, with highly complex air freight systems suffering the heaviest hit, CNBC adds. Thousands of flights were grounded around the world. Unfortunately, this latest hindrance is occurring during a time of increased demand, with shipments up 13% year-over-year in June. UPS and FedEx warned consumers of delayed package deliveries for the first few days after the disruption, CBSNews reports, as the malfunction forced them to enact contingency plans for their businesses.

Even now, when most devices have been fixed, the effects linger: “Delta is still digging out of the backlog,” notes Freightwaves, and may not be fully recovered for a few more days. Tesla shut down two of its manufacturing lines in response to the outage, Manufacturing Dive reports, and there’s been no update as to whether they’re back to business.

Still, automakers aren’t concerned enough about cybersecurity threats, cautions Arun Kumar, partner and managing director in the automotive and industrial practice at AlixPartners. “This latest IT failure is yet another reminder of how fragile our supply chain system is. We got our first wakeup call during Covid, a reminder with the Red Sea diversions and now CrowdStrike. The world of trade still needs to build in redundancies.” This outage wasn’t a cybersecurity attack, but the scale of the problem does emphasize how interconnected — and delicate — our networks can be.

Another case for building resilience

If there’s one thing supply chain professionals have learned over the past five years, it’s the necessity of resilience — and certainly not just when it comes to cyberthreats. PBS reports on widespread shortages of children's medications and the ongoing baby formula shortage, as parents call pharmacy after pharmacy to find these essential products. Factors include reliance on foreign suppliers, transportation challenges and coordination failures in distribution. These disruptions highlight vulnerabilities in the pharmaceutical supply chain and the critical need for more resilient systems.

There’s always more to learn when it comes to the latest threat to our supply chains. That’s why we just hosted the webinar Planning for Resilience: Navigating Global Supply Chain Disruptions. Learn how to make your networks stronger by better understanding the correlation between disruptions and external factors, exploring mitigation strategies, and learning from real-world experiences. ASCM members can watch the on-demand version anytime. Not a member? It’s just $10 a month to join. Not only will you have access to this necessary discussion about resilience, but you’ll also save $200 on ASCM's Supply Chain Resilience Certificate. Join us today!

One Giant Leap for Connectivity: NASA and Nokia Wire the Moon

Fri, 19 Jul 2024 00:00:00 -0500

In April of 1970, the crew of the NASA spacecraft Apollo 13 experienced such severe mechanical problems that they were forced to abort their mission and turn back to Earth in a so-called lifeboat. But first, the astronauts had to alert Mission Control via radio transmission. It was a dramatic SOS immortalized in the 1995 film Apollo 13: “Houston, we’ve had a problem.” But imagine if this famous line had been sent via text or over Zoom. Let’s hope there were no troublesome typos — and that the astronauts remembered to unmute.

Today, CNN is reporting that out-of-this-world connectivity might soon be realized, as NASA and Nokia have partnered to establish a lunar cellular network. Later this year, a SpaceX rocket will take the Nokia Bell Labs 4G network to the moon: “It will be loaded onto a lander made by U.S. company Intuitive Machines and, once deployed, it will connect the lander via radio equipment to two roaming vehicles with their own special mission: to search for ice.”

Despite years of high-resolution maps and other forms of technology indicating the presence of water and ice on the moon, there are no images available. If the lunar lander can penetrate a moon crater and send pictures via the new cellular network, NASA would gain valuable information for potential space colonies. Future colonists could even use their smartphones to access apps and services back on Earth via intergalactic connectivity!

The project also has the potential to benefit communication technology here on Earth. “If a network can withstand the journey into orbit, then deploy and endure autonomously amid the vacuum of space, wildly fluctuating temperatures and cosmic radiation, it will be able to survive the harshest locations on Earth — such as polar ice caps, deserts, or offshore platforms,” CNN notes. Further, a compact and low-footprint network has much potential to improve public safety and emergency response during rapidly changing situations and for people without access to traditional communication methods.

Space-age supply chain tech

The vast majority of us won’t be rocketing into space anytime soon in order to check out this new and exciting technology. But we do have the opportunity to travel to Austin for ASCM CONNECT 2024: North America to learn about the hottest new tech that’s revolutionizing global supply chains.

While there, don’t miss the numerous educational sessions along the Digital Capabilities, Technologies and Enablers track, which will teach you how to maximize data analytics, the internet of things and cloud-based computing to achieve visibility, synchronization and best-in-class digital maturity. Also, at our Tech Talks, conference attendees will connect with supply chain peers at thought-provoking roundtable discussions while learning about the latest solutions driving the industry forward. And our Innovation Hub features exhibits from trusted supply chain organizations and industry experts enabling participants to immerse themselves in a fully interactive journey.

4 Ways to Boost Performance with Transformational Leadership

Wed, 17 Jul 2024 00:00:00 -0500

What makes a great supply chain leader? There’s extensive literature and plenty of educational programming about general leadership, but when it comes to supply chain specifically, the real key is having a transformational leadership style. This style has emerged as the most effective for today’s business environment because it’s focused on building and maintaining strong relationships with those you lead, improving organizational learning, creativity, innovation, and high performance.

With these essential aspects in mind, following are four strategies employed by transformational leaders:

1. Transformational leaders inspire others. Supply chains are composed of multiple different but related parts, which often have very different key performance objectives. A transformational leader can inspire these different parts to join in a shared vision that improves quality, service and the bottom line. By inspiring people and teams to follow the vision, the leader unifies them in working toward a common goal. For instance, transformational leader Alan Mullaly, former CEO of Ford Motor Co., saved the company from having to accept a government-issued bailout during the financial crisis of the late 2000s. He aligned the company around the unified One Ford vision. This removed siloed objectives and enabled the company to focus on the supply chain basics of ensuring that production and demand for Ford vehicles were in parity. The company’s financial results dramatically improved: By 2010, Ford's net income had gone from the brink of bankruptcy to $6.6 billion, and Mullaly’s approval rating was a staggering 97% — showing that transformational leadership can drive great results while improving culture.

2. Transformational leaders build trust. Transformational leaders understand the importance of cultivating trust at every touchpoint of the supply chain. Through open communication, consistent reliability and ethical conduct, they forge enduring partnerships with all stakeholders. In a globalized marketplace fraught with risks, trust-building becomes indispensable for mitigating uncertainties and ensuring the seamless flow of goods and information across the supply chain. Trust also increases the speed at which business is conducted and information is shared. When information is shared more promptly, different supply chain links can more effectively predict and react to disruptions. Honda stations its engineers in its U.S. supplier facilities, where they lead kaizen events to help improve efficiency. The company dedicates 13 weeks to this development program, which includes creating a model production line at the supplier’s manufacturing facility. And the engineers stay in touch with the suppliers after they leave the plant. The program has increased supplier productivity by 50%, boosted quality by 30% and cut costs by 7%. Plus, suppliers share 50% of the cost savings generated with Honda.

3. Transformational leaders motivate. The dynamic nature of supply chain demands resilient and motivated teams capable of navigating complexities and overcoming obstacles. Transformational leaders excel in inspiring individuals to perform at their best by recognizing and harnessing their unique strengths. Motivated teams become strategic assets in the face of supply chain disruptions, enabling organizations to adapt swiftly and maintain operational continuity. In 1914, Henry Ford instituted the eight-hour workday and 40-hour work week and doubled his employees’ wages from $2.34 to $5.00 per day. This was his contribution toward work-life balance. He gave his employees time off to rest so that they could come back to work motivated and as their best selves. His program worked. It boosted productivity and instilled a sense of pride and loyalty in Ford’s employees.

4. Transformational leaders innovate. Transformational leaders foster an environment conducive to innovation by promoting experimentation, embracing technological advancements and challenging conventional practices. They also facilitate cooperation among employees and stakeholders, thereby driving innovation. Amazon founder Jeff Bezos established a culture of innovation to grow Amazon into the e-commerce giant it is today. For example, its Relay app enables truckers to enter information prior to their arrival at a warehouse to make on-property times more efficient. Amazon also invested in its own air cargo delivery by spending $1.5 billion on a cargo hub in the Cincinnati-Northern Kentucky area. In addition, $1 billion was allocated to fund startups that develop innovation to make supply chains more efficient and resilient. The company’s advances have been made possible by a leader who was not afraid to take risks and innovate in pursuit of the overall vision.

Building more leaders

In the supply chain landscape, transformational leadership reigns supreme. Transformational leaders build trust and inspire collaboration while fostering a culture of innovation and high performance. By uniting teams around a shared vision and motivating individuals to excel, transformational leaders empower their organizations to navigate complexities and achieve lasting success.

Get started on your transformation with APICS CTSC. With a CTSC, you'll show you have the skills to manage an end-to-end supply chain transformation.

Reducing Stock to Increase Profit: The Next Big Thing in Retail

Fri, 12 Jul 2024 00:00:00 -0500

It may seem counterintuitive, but retailers are discovering that the best way to get people to buy more is to offer less. That’s the case in the grocery store aisle, and it’s true with clothing, toys and accessories, too: Endless scrolling — or racks of choices — leads to decision fatigue. When the options are limitless, we often choose to buy nothing at all. That’s a disaster for retailers, who must turn around and cut prices to cull inventory and make way for the next shipment of goods. Even worse, the environmental impact of cheap goods is enormous.

On the other hand, curating options is beneficial for both consumers and the retailers who rely on happy customers. “Offering fewer unique products — and cutting those that don’t sell quickly and have to be discounted — is also a way to trim costs and fatten margins,” notes the Wall Street Journal. For example, HanesBrands began limiting the variety of offerings during the pandemic, when they, like many companies, were struggling to maintain adequate stock during recurring supply chain breakdowns or delays. But the reduction continued: The number of unique products as of the first quarter of 2024 is down about 50% from 2019, the Journal reports. That has only benefited their profits — gross margins were 40% this quarter, up from 32.4% a year ago. Companies like Deckers Outdoor are also reaping the financial benefits of their reduced offerings: “More products are selling without discounts… [and some are] even selling at higher prices.”

Similarly, Under Armour, Levis Strauss and Hasbro all have already or plan to cut their SKU counts by as much as 50% to give consumers the “right aisle” as opposed to the endless one, the Journal continues. Meanwhile, Dollar General “used to stock six different kinds of mayonnaise on its shelves and is now looking to drop a couple of them,” reports the Associated Press. And “Kohl’s has been cutting back on the colors and variations of sweaters, jeans and other items” in a more “edited approach.” The reason? Consumers won’t notice the lack of choice; in fact, they’ll be relieved by the absence of clutter and overwhelm. Notes Vogue Business, a “consequence of too many choices is that people end up less satisfied with their decisions. A store stuffed with 1,100 white cotton blouses can only raise doubts that a better blouse was missed somewhere in the haystack… [creating] a lingering sense of regret.”

To mirror the reduction of offerings, some stores are shrinking too; Macy’s and Bloomingdales, two department stores known for their massive sizes, are closing their huge stores and opening shops with smaller footprints: 30,000 to 50,000 square feet, down from as much as 200,000, reports Vogue Business. But the average store in America is just 3,200 feet. It’s a size that is easier to manage for consumers and retailers alike.

Shifting priorities requires updated information

For supply chain professionals who began their careers during the “more is more” era, buying less and trusting customers to stay loyal to the brand might take some getting used to. But that’s where the ASCM Knowledge Center comes in: It’s your one-stop shop for on-demand learning content, from webinars, courses, microlearnings, discussion groups and more that will bring you up-to-date on important topics in supply chain today. From retail to logistics, risk management to robotics, and chaos theory to SCOR, you’ll find everything you need to improve your knowledge of supply chain — and level up your career. Join ASCM today and you’ll get access to this valuable resource, and so much more.

Supply Chain Transparency Paradox: A Sharing Dilemma

Wed, 10 Jul 2024 00:00:00 -0500

Editor’s note: A recent article in ASCM’s Transportation Journal explores how disclosing supply chain information affects patients. "Shaping Patient Perceptions with Health Care Supply Chain Transparency" by Duan et al. highlights the importance of giving thoughtful consideration to exactly what information is disclosed. The following summary of the original research offers some interesting considerations — no matter what industry your supply chain supports.

Patient satisfaction plays a pivotal role in the health care sector. High satisfaction directly correlates with quality of care, improved financial performance, and higher patient loyalty. It also affects vital metrics such as return on inventory, cycle time and lead time variability. Specifically, aspects including medication sourcing can influence patient perceptions due to potential differences in inventory turnover and lead time fluctuations. Additionally, the efficacy of service operations conducted by health care professionals, such as follow-up timings post-appointment, can significantly influence demand variability for medical supplies and medications.

A key factor influencing patient satisfaction is supply chain transparency — meaning, a company disclosing information to the public about upstream operations of the products it sells. In the health care context, this translates to hospitals, clinics, private practices, long-term care facilities and other medical service providers sharing similar information with patients. Following are some interesting considerations from the research:

Impact of disclosure: Does simply disclosing supply chain information enhance patient perceptions of physicians and health care providers?
Content and psychological distance: How does the nature of the disclosed information (for instance, sourcing location) and perceived psychological distance (closeness/remoteness) influence patient perceptions?
Service recovery actions: Can health care professionals use service recovery actions (such as more frequent follow-ups) to mitigate potential negative effects arising from disclosures, particularly those related to distant manufacturing locations?

Through two vignette-based experiments, this study offers valuable insights into maximizing the benefits of transparency by strategically selecting content and adapting service operations.

Transparency tightrope

The initial inquiry revolves around whether simply disclosing health care supply chain information automatically enhances patient perceptions. This act represents the first step toward transparency. Study findings challenge the assumption of a straightforward positive effect. Instead, the content of the disclosure proves to be more pivotal. Disclosing distant sourcing locations, for instance, can have unintended consequences.

This research introduces the concept of psychological distance to explain how patients perceive supply chain information. People tend to see objects or events as closer or farther away from themselves, both in space and time, than they actually are. This perception of distance influences judgments, decisions and behaviors. Generally, increased psychological distance reduces trust. As the perceived distance grows, people tend to engage in more abstract thinking, feel more uncertain and become less likely to engage with the object.

Evidence from marketing demonstrates that retailers can influence consumers' perceived temporal and spatial distances by varying information cues, ultimately affecting purchasing decisions. Likewise, in health care, ensuring a relatively short psychological distance for patients is crucial, given its strong correlation with trust and security.

Health care supply chains are complex networks involving participants from various locations. Given the prevalent practice of offshoring, perceived spatial distance becomes a relevant factor. This research proposes that the spatial distance of the health care supply chain is negatively associated with patients' perceived psychological distance and, consequently, their perceptions.

Temporal and spatial distance

Building upon the concept of spatial distance, this research introduces the concept of temporal distance. Temporal distance refers to the perceived time difference between an individual and an event. In the health care context, this could be the period between a doctor's appointment and a follow-up consultation. Like spatial distance, increased temporal distance can negatively affect trust and satisfaction.

To investigate further, study participants were presented with a scenario in which they were experiencing a health issue and visiting a physician. The scenario depicted a thorough examination and a well-defined follow-up plan by the physician. Following this context, participants were randomly assigned to one of four scenarios manipulating both spatial and temporal distances. The spatial distance manipulation involved disclosing the medication being manufactured in either Mexico (closer) or India (farther). The temporal distance manipulation involved informing participants that the physician follow-up regarding their health and medication effectiveness would occur in either one week (near future) or three months (distant future).

The results supported the hypotheses: Disclosing a distant SC location negatively affected patient perceptions of both the medical supplier and the physician compared to a closer one. Additionally, the longer temporal distances diminished patient satisfaction with the physician, but not their perception of the medical supplier.

A crucial finding involved the interaction effect between spatial and temporal distances. The results showed that the physician's follow-up timing had a more significant impact on patient satisfaction when the medication originated from a distant location. In this scenario, a delayed follow-up significantly decreased patient satisfaction compared to a timely one. Conversely, when the medication originated from a closer location, follow-up timing had a less pronounced effect.

Key takeaway

The research highlights the importance of considering the content of supply chain information disclosed to not only patients, but also other stakeholders. Simply sharing information doesn't necessarily improve a person’s overall impressions, and transparency can be a double-edged sword. By strategically selecting what information to share and potentially implementing service recovery actions, supply chain professionals can leverage transparency to enhance satisfaction and improve overall outcomes.

Learn more about the Transportation Journal and the authors of the original research: Yanji Duan, Coggin College of Business, University of North Florida; Jing Xu, Brooks College of Health, University of North Florida; Lian An, Coggin College of Business, University of North Florida.

5 Illuminating Facts About the Fireworks Supply Chain

Fri, 05 Jul 2024 00:00:00 -0500

Last night all across the United States people enjoyed the dazzling displays of Independence Day. Fireworks are pyrotechnic marvels: the heart-stopping booms, the cascade of dazzling colors, the incredible finales. But have you ever wondered what it takes to create these awe-inspiring moments?

Manufacturing fireworks is quite labor-intensive. Production requires a delicate mix of sulfur, charcoal and potassium nitrate, packed into various components including shells, fuses and aerial effects. Skilled technicians must meticulously assemble each firework to ensure a visually stunning experience while prioritizing safety and quality control.
Many fireworks include extra elements to create unique sounds. The Smithsonian states that layers of an organic salt, combined with an oxidizer, burn one at a time to slowly release gas and create whistling sounds. Aluminum or iron flakes create hissing and sizzling sparkles, and titanium powder gives us those super-loud blasts. Colors too, are attributed to particular materials.
Transporting and storing fireworks is a delicate process. For obvious reasons, fireworks can’t just be carried by any shipping company to the average warehouse, notes Forbes. Fireworks-storage facilities “are equipped with temperature-controlled environments and specialized storage locations to ensure different types of fireworks are separated to prevent accidental combustion.” There are strict rules about transportation, and trained professionals must take precautions to prevent ignition and ensure compliance with multiple regulations.
Weather plays a prominent role in fireworks demand. About 90% of fireworks in the United States are manufactured in China, meaning orders are placed well in advance of the 4th. But consumers tend to purchase fireworks just before the holiday, so excessive rain or drought can put a serious damper on sales.
Today’s fireworks are more futuristic than ever. Drones are now commonly used to create dazzling light shows, as more and more cities are retiring colorful fireworks displays in favor of “swarms of illuminated drones.” Drone shows are safer and much more environmentally friendly, as they generate fewer emissions, increase material sustainability and reduce the need for mining operations. The Chicago Tribune notes, “The market size for global drone light shows was valued at $1.3 billion in 2021 and is projected to reach $2.2 billion by 2031.”

Make the magic

Whether you're captivated by classic fireworks or intrigued by the rise of drone light shows, we have talented supply chain professionals to thank. Take a deeper dive into this kind of supply chain mastery with ASCM’s wealth of content, professional resources and events. You'll be even better prepared to orchestrate the behind-the-scenes magic that is our global supply chain.

Supply Chain Crises Echo Pandemic Disruptions

Fri, 28 Jun 2024 00:00:00 -0500

An attack by Houthi rebels in the Red Sea. Extensive drought in the Panama Canal. The tragic bridge collapse in Baltimore. The ongoing threat of labor strikes. Any one of these events could wreak havoc on supply chain continuity; together, the results are nearly cataclysmic — in a way that feels eerily familiar.

A recent story in the The New York Times calls our current market “COVID junior,” noting that containers are hard to come by because of cancelations, special handling fees and “peak season surcharges.” Consequently, carriers are increasing rates while “raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make-or-break holiday shopping season.”

Data compiled by cargo analytics company Xeneta notes that moving a 40-foot shipping container from China to Europe costs about $7,000 — up from $1,200 in October. “That is well below the $15,000 peak reached in late 2021, when supply chain disruptions were at their worst, but it is about five times the prices that prevailed for the years leading up to the pandemic,” the Times reports. Rates have similarly increased for Shanghai to Los Angeles and Shanghai to New York — with Peter Sand, Xeneta’s chief analyst, is quoted as warning, “We haven’t seen the peak yet.”

Given the disruptions and added costs, some increase in shipping rates is inevitable; nevertheless, it could also be a self-fulfilling prophecy, as many industry voices claim carriers are raising rates beyond justifying their added expenses.

For a different perspective, Bloomberg cites Michigan State Professor of Supply Chain Jason Miller: “The latest constraints aren’t yet holding back factory activity in major developed economies or threatening another flareup of inflation … Once a tailwind, demand is now more of a headwind.” The three main drivers of supply chain upheaval during the pandemic — transportation, material shortages and insufficient labor — are all back to 2019 levels, while demand has steadily increased. Plus, supply chain professionals learned a thing or two from the pandemic uncertainty: They’re more likely to be using the latest technologies, and they’re better at responding to disruptions thanks to dynamic capabilities.

Building resilience via stronger relationships

There is a distinct silver lining among the clouds of the past few years in the industry: Supply chain professionals have incorporated so much of their robust experience into their management styles, and it’s proving critical in this time of increased uncertainty.

There are many ways to improve professional growth, increase efficiency and drive innovation, including ASCM’s brand-new credential, the Supplier Relationship Management Certificate. The program provides you with comprehensive knowledge of the concepts, tools and trends related to supplier relationship management. You will learn to optimize supplier relationships, enhance your organization’s credibility, empower leaders and so much more. Plus, you’ll get hands-on experience with key management tasks, including negotiating supplier contracts and evaluating the risks of any potential partnership. Take collaboration to the next level — get started today!

Use Chaos Theory to Predict and Control Supply Chain Operations

Wed, 26 Jun 2024 00:00:00 -0500

Although we like to think of our business operations as controlled and calculated, supply chains can be chaotic. They are often disorganized and full of tension and stress. But chaos is also about unpredictability in complex systems. One of the most famous aspects of chaos theory is the butterfly effect, which posits that one small occurrence can create a disproportionately large change. In other words, complex systems, like the natural world, are unpredictable.

Importantly, chaos is not randomness. “Almost all chaotic phenomena can vary only within limits,” Peter Dizikes writes for MIT Technology Review. An action or a sequence may seem completely random, but there are only so many ways a butterfly will fly in a cage. As we saw during the pandemic, a delayed shipment can be the butterfly flapping that results in empty store shelves and lost profits; this can lead to downstream effects at other retailers who depend on those same suppliers.

Chaos in the supply chain

In “Six Causes of Supply Chain Chaos Can be Fixed Now,” an ASCM webinar, John Melbye, director of WA Solutions USA, explains that there are six reasons inventory management is so chaotic.

1. Precision dilemma. It’s difficult to determine the exact best right time for the inventory to be in stock. A longer timeframe is less likely to be precise, but a shorter one risks inventory being unavailable when it’s needed. Stakeholders expect an exact match, but it practice, it doesn’t work that way.

2. Process loophole. The questions inventory managers ask most are “how much?” and “when?” But there’s a lack of a standard process that’s “repeatable, reliable and transferable,” Melbye notes. Everyone in the organization will react differently to any required change. He gives the example of a group of disparate professionals traveling to a centralized location for a conference; getting each person from their home base to the closest airport at the correct hour to catch the shuttle bus, while avoiding wasted time in the airport, is a complicated process. If everyone in the group was tasked with creating the schedule separately, each person would likely come up with a different option. Similarly, in supply chain, there are many different methods for getting a product from point A to point B, and there’s no industry standard for making that happen.

3. Cost reduction obsession. Cost is an outcome, and it’s a mistake to focus on changing the outcome, Melbye suggests. It’s more important to focus on the inputs and how those can be changed to save money. For instance, if a consumer receives a high electric bill, their response isn’t to ask the electric company to reduce the charges; instead, they’re likely to focus on turning off the lights or adjusting the thermostat.

4. Push to reduce inventory. Too much inventory ties up cash, but too little causes chaos and increases the cost of expedites, Melbye acknowledges. There’s no consistent formula for target inventory.

5. Target inventory determination. It’s necessary to find the target inventory by part, instead of by product.

6. Confusion on where to focus. Most supply chain professionals are focused on creating a better forecast, but there’s too much variability to be precise, Melbye notes. That leads to the “metric wars,” where one person must fail for another to succeed.

Traditional planning requires stability. “That world is gone,” Melbye says. Instead, supply chains must respond to the “VUCA” world (volatility, uncertainty, complexity and ambiguity) as it exists today.

Applying chaos theory

Forgoing stability and embracing agility and resilience may be a significant mindset shift for some. But understanding that systems can’t be controlled or predicted with certainty is the key, writes Stefan Reidy, CEO of Atexxa Group AG. “Instead, chaos theory focuses on understanding seemingly random processes' underlying patterns and behaviors … This means actively embracing uncertainty and incorporating flexibility into the supply-chain design.”

Melbye suggests the solution to addressing VUCA is demand-driven material requirements planning, which uses “strategic decoupling points to drive supply order generation and management throughout a supply chain.” A decoupled lead time requires exact stock for only a specific element of a product instead of an entire warehouse. He uses the example of a burger restaurant: chaos is limited to the kitchen. The cooks know they have all the ingredients to make one burger or 100 burgers, depending on the order. They only have to worry about how fast the customers come in; they’re not concerned with the lead time on ground beef.

Implementing chaos theory in supply chain management has its challenges, Reidy admits. “It may require investments in new technologies and analytical capabilities to capture and analyze real-time data.” But embracing the methodology can reduce risks, optimize inventory levels and improve responsiveness. For Melbye’s part, he suggests that part of this solution to overcome these problems of chaos is strategic inventory targets to right-size inventory, as well as a change from forecast improvement to operational capability. Much of this shift is a matter of digital transformation or adoption of breakthrough technology. There’s power in transparency and real-time data, Elemica notes: “In a connected and digitized supply chain, not only could we know exactly where our raw materials are at any moment, but we could already be forecasting potential delays to our manufacturing team and reconfiguring schedules to ensure we aren’t losing time simply waiting for the shipment to arrive.”

For example, as I noted in two recent blog posts, prescriptive analytics, rather than future-casting, helps people identify what should happen and then determine the best course of action. And AI-enhanced digital twins can self-optimize and self-configure. As I pointed out, “Together they can run more simulation scenarios than previously possible, run scenarios faster, enhance scalability, forecast more accurately and deliver users with faster and more accurate analysis that supports faster and better decision-making.”

Here’s some more good news: Melbye has a vision for the future. It includes the following:

Better metric review. Inventory measures should be better aligned relative to the target
Revised expectations. Instead of using ineffective due dates for suppliers, simply ask them to prevent stock outs. Similarly, operations expectations should be tied to output instead of schedule achievement.
New job titles. Instead of piling new tasks and responsibilities onto workers’ existing jobs, new positions like buffer manager and constraint manager should be created.

“Question everything!” he concludes. “It’s not that we’ve been doing things wrong; it’s that the world around us keeps changing, and we’ve failed to adapt to those new conditions. So, let’s step back and explore those new conditions and change that paradigm of supply chain.”

Resilience and agility are essential for supply chain success. ASCM’s Certified in Planning and Inventory Management (CPIM) program equips you with the skills to excel in all supply chain functions.

Your Summertime Supply Chain Reading List

Fri, 21 Jun 2024 00:00:00 -0500

It’s that time of year when it seems like every newspaper, magazine and blogger publishes a list of summer “musts” — must read, must watch, must visit or do ... And with so much content out there, it’s nice to have someone to curate your choices. With that in mind, our ASCM team has compiled the following suggestions just for you:

Supply Chain Knowledge Center: ASCM’s hub for all things supply chain features on-demand learning content — including webinars, courses, presentations and lots more — in a variety of formats, durations and topics. One of my favorites is the Top 10 trends for 2024 (another list!), which details key subjects on the minds of supply chain experts, as well as how you can incorporate the trends into your operation. And for a deeper dive, check out our library of microlearnings — five-minute courses on a variety of emerging topics, such as Introduction to Robotics in Supply Chain, Introduction to Location Management in Supply Chain Management and Introduction to Synchromodality in Supply Chains. Not yet a member? Now’s a great time to join for just $10/month. There’s even an app!
ASCM Insights Blog: I’m not the only one who writes for our blog; our Editor-in-Chief Elizabeth Rennie has authored many long-form pieces that are worth your time this summer, including 7 Things Supply Chain Professionals Need to Know About AI and The ABCs of Supply Chain Resilience, both helpful primers on essential topics for the modern supply chain professional. Plus, we have numerous guest bloggers who’ve penned excellent pieces such as Sustainability Shortcut and Supply Chain as a Destination Career.
Sustainable Supply Chain Orchestration: Unlearning for a Better Tomorrow. This text, by ASCM thought leader Deborah Dull and our own EVP Douglas Kent, will help you drive meaningful change in your organization through a transformative framework. Dull has been speaking about climate change and circularity in supply chains for years, and this book will give you the chance to investigate her theories in much more detail.
Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model: Another EVP at ASCM, Peter Bolstorff, coauthored this book featuring the SCOR framework. You’ll find this industry-leading methodology explained and applied in exciting new ways; plus, the book includes plenty of use cases that will excite your creativity for when you’re back in the office.
ASCM Supply Chain Dictionary: Sure, the dictionary may not seem like your average beach read, but have you ever checked out this dictionary? It is the absolute authority on supply chain and the foundation of ASCM’s content. Ever forget the difference between a continuous replenishment program and a continuous review system? Or need the definitive description of supplier relationship management? The ASCM dictionary has you covered.

So, as you pack for the lake, the shore or another fun summer destination, bring along one of these “musts.” You know you’ll be advancing your career and expanding your mind. Best of all, you’ll be recharged and reinvigorated for supply chain excellence from the moment you return to your desk!

Simple Ways to Build Stronger Supplier Partnerships

Tue, 18 Jun 2024 00:00:00 -0500

Supply chains around the world are facing unprecedented challenges. Disruptions, from natural disasters to trade wars, can leave businesses scrambling to find alternative sources for materials or facing delays that cripple operations. Strong, collaborative relationships with suppliers are essential.

Prioritize data-driven decision-making

Traditionally, supplier selection has often focused on price. But the race to the bottom can have unintended consequences. Data analytics plays a crucial role in making informed decisions about both supplier selection and management. Big data enables supply chain organizations to analyze historical purchasing information, supplier performance metrics and even real-time data to predict potential issues with lead times or delivery. This proactive approach empowers businesses to:

Analyze historical performance data to identify suppliers with a proven track record of delivering high-quality products on time.
Use predictive analytics to anticipate potential problems, such as lead time variations or parts shortages. This allows companies to adjust their ordering patterns or identify alternative suppliers beforehand.
Invest in data analysis to determine optimal inventory levels to avoid stockouts while minimizing storage costs.

Invest in supplier onboarding

Effective management of a large network of suppliers requires a systematic approach. Onboarding new suppliers smoothly is crucial to avoid disruptions and ensure successful integration. Here are two key points for achieving these goals:

A well-defined process ensures consistency and reduces the risk of overlooking critical steps. This includes evaluating supplier capabilities, financial stability and alignment with your company's values.
A central database allows you to easily compare suppliers, track performance data and manage communication. The database should classify suppliers by product, contract value and criticality to your operations.

Promote trust and collaboration

Strong supplier relationships go beyond simply placing orders and receiving deliveries. Establishing trust and fostering effective working relationships are essential for long-term success. Consider the following strategies:

Regular communication helps avoid misunderstandings and fosters a sense of partnership. Discuss challenges openly, share forecasts and provide feedback to keep suppliers informed.
Sharing relevant data with your suppliers demonstrates transparency and allows them to better understand your needs and challenges. This can lead to improved planning and collaboration on both sides.
Clear performance metrics and a feedback loop to track supplier performance are extremely valuable. Address issues promptly and collaboratively, offering support when needed.

Become a customer of choice

Just as you seek reliable suppliers, suppliers also want to partner with the customers they value. Here's how to become a preferred partner:

Meet payment terms to demonstrate reliability and strengthen trust with your suppliers.
Be clear and concise, avoiding ambiguities that could lead to delays or errors.
Look for ways to collaborate beyond just price negotiations. For example, involve suppliers in new product development discussions or joint-planning initiatives.
Find ways to intentionally recognize and reward high-performing suppliers. This reinforces positive behavior and strengthens the partnership.

Investing in supplier relationships is an ongoing process. By implementing the strategies outlined here, you can create a network of reliable partners who are invested in your success. This collaborative approach will help you optimize risk management, enhance innovation, become much more resilient and boost the ever-important bottom line.

Explore ASCM’s Supplier Relationship Management Certificate to learn more about this topic.

5 Ways to Transform Your Supply Chain with Inclusion, Equity and Diversity

Fri, 14 Jun 2024 00:00:00 -0500

Running a successful supply chain organization is complex. But one way to help ensure all team members proactively generate ideas and are fully engaged in problem-solving is by giving them an inclusive, equitable and diverse workplace. That’s why ASCM teamed up with the Society for Human Resource Management (SHRM) and the SHRM Foundation to determine the state of IED in supply chain, its impact on the bottom line and best practices for leveraging the power of IED across the supply chain and beyond.

More than 1,400 supply chain and HR professionals were surveyed in order to produce “The Power of IED in the Supply Chain: Unlocking Resilience and Growth.” The data showed that, first and foremost, IED initiatives make good business sense: Among supply chain managers who work at companies with highly effective IED practices, 73% report that their department performs somewhat or much better than their competitors’, versus only 44% at companies with ineffective IED practices.

Further, companies with effective IED practices are more likely to experience low turnover. Poor IED practices play a large role in supply chain employees’ likelihood to leave their company — especially women and people of color. Additionally, those who feel their company is not making IED-related progress are 4.5 times more likely to say they often feel burned out.

Unleash your team’s potential

ASCM Editor-in-Chief Elizabeth Rennie writes in our latest blog post that “IED translates into a competitive advantage” in three main ways: enhanced performance, improved talent acquisition, and greater employee engagement and retention. To make meaningful strides toward these valuable aims, she offers the following strategies, based on data from the research:

Establish buy-in and involvement at the highest levels. The study found a clear correlation between leadership involvement and positive outcomes. When leaders are actively involved in setting goals, tracking metrics and engaging in IED planning, the chances of success increase significantly.
Create IED goals and hold leaders accountable for achieving them. This accountability can come in various forms, such as tying IED progress to performance reviews, bonuses or promotion opportunities for supply chain managers and executives.
Demand that supply chain be part of the conversation. The research emphasizes the importance of integrating supply chain leadership into the company's broader IED strategy. When leaders are actively involved in companywide IED, they can tailor initiatives and goals specifically for the supply chain department, leading to more effective outcomes.
Be creative in how IED is applied across different business operations. While attracting diverse talent is important, it's just one piece of the puzzle. The study suggests offering benefits that cater to the needs of diverse employees, such as childcare assistance, comprehensive parental leave options and employee resource groups that create a sense of belonging.
Use training as a resource, not the sole solution. Training empowers leaders and managers to champion inclusive practices, treat all employees with respect, address specific challenges and develop strategies to create a more inclusive work environment.

To learn even more, I encourage you to read the full blog post and the research report today. You’ll gain strategies for unlocking the full potential of your workforce and building a more competitive and resilient supply chain.

5 Steps to a High-Performance Supply Chain with IED

Wed, 12 Jun 2024 00:00:00 -0500

In our hyperconnected world, supply chains face both challenges and disruptions that occur with alarming frequency. While organizations scramble to identify and implement solutions, a powerful, yet often overlooked, factor can help create a truly resilient supply chain: inclusion, equity and diversity (IED).

A recent study by the Society for Human Resource Management (SHRM), the SHRM Foundation and ASCM sheds light on the critical role IED plays in supply chain success. The research, which surveyed more than 1,400 supply chain and HR professionals, revealed a disconnect between the existence of IED initiatives and their perceived effectiveness. While a majority of companies with supply chain departments report having such programs (62% of supply chain professionals and 54% of HR professionals), only a fraction (29% and 20% respectively) believes them to be very effective. Interestingly, supply chain professionals themselves are more likely (45%) to perceive their company's IED efforts as successful. This highlights a potential gap between leadership perception and employee experience regarding the true impact of IED initiatives.

The research goes beyond identifying this gap to highlight the undeniable benefits of fostering an inclusive, equitable and diverse supply chain workforce. Here's how IED translates into a competitive advantage:

Enhanced performance: Companies with strong IED practices report a significant edge over competitors. Supply chain managers from these organizations are 73% more likely to report their department outperforming rivals. This competitive advantage likely stems from the diverse perspectives and experiences that an inclusive workforce brings to the table, leading to more creative solutions and innovative approaches to problem-solving.
Reduced turnover and increased talent acquisition: The lack of effective IED initiatives can lead to a revolving door of talent within the supply chain department. HR professionals at companies with weak IED efforts report significantly higher turnover rates compared to those with strong initiatives. Furthermore, companies struggling with IED are less likely to attract top talent from diverse backgrounds, hindering their ability to build a well-rounded workforce.
Improved employee engagement and retention: A company culture that prioritizes IED fosters a sense of belonging and respect for all employees. The study found that supply chain workers who feel their company is very effective at achieving IED progress report higher job satisfaction and lower burnout rates. This translates to a more engaged workforce of people who are less likely to seek employment elsewhere. Retention rates are particularly affected for women and people of color, highlighting the importance of creating a welcoming environment for all.

The research also delves into the reasons behind the ineffectiveness of many existing IED programs. Here's what companies need to do to bridge the gap and unlock the true potential of IED in their supply chains:

1. Establish buy-in and involvement at the highest levels. Senior leadership needs to champion IED initiatives for them to succeed. The study found a clear correlation between leadership involvement and positive outcomes. When leaders are actively involved in setting goals, tracking metrics, and engaging in IED planning, the chances of success increase significantly. Conversely, companies lacking strong leadership support are much less likely to make progress towards their IED goals.

2. Create IE&D goals and hold leaders accountable for achieving them. Simply having an IED initiative is not enough. Clear, measurable goals need to be established, and leaders must be held accountable for achieving them. This accountability can come in various forms, such as tying IED progress to performance reviews, bonuses, or promotion opportunities for supply chain managers and executives. This incentivizes leaders to prioritize IED efforts and hold themselves, and their teams, accountable for progress.

3. Demand that supply chain be part of the conversation. Too often, IED efforts are siloed within the HR department. The research emphasizes the importance of integrating supply chain leadership into the company's broader IED strategy. When supply chain leaders are actively involved in companywide IED planning, they can tailor initiatives and goals specifically for the supply chain department, leading to more effective outcomes.

4. Be creative in how IED is applied across different business operations. Many companies focus primarily on recruitment as their sole IED strategy. While attracting diverse talent is important, it's just one piece of the puzzle. The study suggests employing a multifaceted approach. This could involve offering benefits that cater to the needs of diverse employees, such as childcare assistance or comprehensive parental leave options. Additionally, supporting employee resource groups that create a sense of belonging and empower employees to celebrate their identities can significantly improve employee engagement and retention.

5. Use training as a resource, not as the sole solution. While some controversy surrounds IED training, the research proves its value when combined with other initiatives. Training empowers leaders and managers to champion inclusive practices, treat all employees with respect, address specific challenges and develop strategies to create a more inclusive work environment. This helps supply chain organizations better focus on the practical application of training, equipping leaders to tackle specific issues and implement solutions for fostering inclusion.

Unleash the potential of IED

Take the first step toward maximizing IED in your supply chain by becoming an ASCM member. You’ll gain access to the latest insights into the importance of IED for strengthening supply chain resilience, as well as industry-leading research and content about how to implement it effectively. Join ASCM today!

Eurozone Manufacturing Sees Signs of a Bounceback

Fri, 07 Jun 2024 00:00:00 -0500

I’m writing this edition of Impact from ASCM CONNECT 2024: Europe in Brussels. This immersive supply chain education program offered so many valuable insights, often brought to life through fascinating accounts and case studies. On a personal note, I’m proud that ASCM makes it possible for supply chain professionals to connect, collaborate and create exciting new partnerships at events such as this one. And I’m inspired by the diverse perspectives of so many industry champions, driving us toward the common goal of a better world through supply chain.

Interestingly, the European supply chain community also has cause to be inspired this week, as Reuters has just reported that “the long-running downturn in eurozone manufacturing may have turned a corner.” In fact, the article cites several promising signs: First, an index measuring new orders in manufacturing rose to its highest level in two years. This, along with increased production output, suggests a potential turning point. Meanwhile, policymakers are identifying new ways to incentivize innovation, address energy price disparities and improve worker training programs to bridge the skills gap, which also heightens overall business confidence.

Attendees at ASCM CONNECT: Europe investigated these and many other global trade trends at a keynote speech by ICC United Kingdom Secretary General Chris Southworth. The International Chamber of Commerce is the world’s largest business organization representing 45 million companies with 1 billion employees in 170 countries. Southworth is an expert in creating modern digital trade ecosystems, and his keynote focused on collaboration and navigating a complex globalized world. Some key takeaways:

Collective effort: The success of supply chain transformation hinges on shared responsibility among businesses, governments and consumers. Collaboration is key to overcoming challenges including data privacy regulations and ensuring everyone benefits from globalization and digitization.
Transparency and consumer trust: Supply chain organizations need to simplify how consumers access information about product origins and use data to empower more informed choices.
The power of storytelling: Compliance and sustainability efforts need compelling narratives that go beyond technical jargon. Effective communication strategies are needed to engage audiences.
Leading change: The supply chain sector needs to be more vocal in advocating for its needs and the benefits it brings to the global economy. Sharing best practices is crucial for navigating rapid change and overcoming short-term hurdles.
Adapting to a changing world: Globalization is here to stay, but it needs to adapt to be more balanced and inclusive. Businesses should consider the impact of reshoring on developing economies and advocate for policies that promote sustainable growth for all.

Southworth’s overall message was one of optimism; more importantly, it was a call to action. By sharing information and communicating effectively, supply chain professionals can build a more sustainable and prosperous future for our global networks.

Of course, we can’t reach these goals without industry experts like you. So I hope you’ll join us for ASCM’s next exciting event, ASCM CONNECT 2024: North America. This dynamic three-day conference is dedicated to the latest trends and innovations, plus essential collaboration to shape the future of our profession. Register today by June 22 to save up to $800 — I look forward to experiencing industry-leading education with you this September in Austin!

Scorching Summer, Aging Infrastructure Challenge Networks

Fri, 31 May 2024 00:00:00 -0500

Meteorologists are forecasting another sweltering summer — one of the five hottest on record. This leads to several concerning trends, including warmer ocean temperatures, frequent severe hurricanes and more destructive fires. Extreme weather events are a threat to humans, wildlife and property; they also make it nearly impossible for a supply chain to function smoothly.

A busy hurricane season can often spell trouble, Supply Chain Brain reports, recalling Hurricane Harvey's week-long closure of multiple Gulf Coast ports, plus Hurricane Ida’s severe effects involving petrochemical production in Texas. “The hurricane took more than 60% of U.S. PVC production offline,” the article notes. Other storms have created similar problems, including production shutdowns, the need to reroute shipments, supplier disruption and critical infrastructure damage.

On the topic of infrastructure, it’s also noteworthy that continued fallout from the tragic bridge accident in Baltimore has renewed discussions about the state of infrastructure in the United States: “Nearly one in 10 of the country’s 617,000 bridges already are significantly compromised,” according to National Geographic. “Many U.S. bridges were built to last 30-50 years, and nearly half are at least half a century old. The average age of U.S. levees is also 50; dams average 57.”

The Bipartisan Infrastructure Law passed in 2021 will help minimize repercussions from aging structures, but the Baltimore incident alone is costing the Federal government $1-5 billion, reports Forbes. Further, the U.S. electrical grid is also cause for concern, the article continues: As automobile manufacturers compete to expand the electric vehicle market, “it’s the aging underlying infrastructure — creeping toward capacity — that poses perhaps the most significant risk of smothering growth.”

These converging threats underscore the urgent need for supply chain resilience. Businesses must proactively assess their vulnerabilities and develop contingency plans to mitigate disruptions. This may involve diversifying suppliers, strategically locating inventory and investing in new technologies that improve visibility and flexibility. By taking these steps, organizations can ensure they are equipped for whatever may threaten to disrupt normal operations.

Supply chain pros are always prepared

Talented professionals are an integral part of managing supply chain disruption, and the field continues to grow stronger and more vital than ever. According to ASCM's annual salary report, available now for ASCM members, a full 85% of respondents are proud of the work they do in supply chain — and they’re paid well for it: The median annual salary for supply chain professionals passed a major milestone, reaching $103,000.

To learn more about the report — including details about work-life balance, potential career paths and necessary skills for success — be sure to watch the on-demand webinar Level Up Your Paycheck: The ASCM 2024 Salary and Career Report. It explores key findings and insights from this annual survey of more than 5,000 international professionals.

Not yet an ASCM member? Don't miss out! For as little as $10 per month, you'll gain unlimited access to our premium content library, which includes live and on-demand webinars, thought-leading blog posts, mini-courses on trending supply chain topics and the indispensable ASCM Supply Chain Dictionary — all the resources you need to become a supply chain leader shaping a sustainable and impactful future. Join our global supply chain community today!

The Power of Supply Chain: ASCM Recognizes the Best of the Best

Fri, 24 May 2024 00:00:00 -0500

At ASCM, we are dedicated to empowering our members to achieve both supply chain excellence and ethics. By prioritizing responsibility in every step and process, we support them in upholding critical values including anti-discrimination, fair labor conditions and environmental stewardship. This empowers supply chain leaders to identify and address potential issues, ensuring networks are not only efficient, but also sustainable.

In fact, a focus on ethical business practices is one of the most important elements of our annual ASCM Awards of Excellence. Consider just a few recent award-winning submissions:

Last year, Lenovo International Services Supply Chain was honored for its commitment to zero waste, greenhouse gas reduction and shipping optimization. The company’s strategic initiative slashed carbon emissions by 160 tons due to enhanced forecasting, more efficient parts harvesting and extended life cycles.
In 2022, we celebrated Zebra Technologies’ commitment to transparency, integrity, human rights and sustainability. Its code of conduct requires all suppliers to follow anti-discrimination, humane treatment and fair compensation policies.
In 2021, Microsoft was recognized for its dedication to supply chain circularity and its commitment to collaborating with suppliers to meaningfully reduce global emissions. Its pioneering carbon reduction strategies, water replenishment projects, and circular-economy approach led to impressive emission reductions, supplier collaboration and a truly global impact.
And in 2020, we acknowledged La-Z-Boy’s fair business practices, which require all suppliers to follow environmental laws and regulations related to air emissions, water discharges, toxic substances and hazardous waste disposal. By partnering with suppliers in this way, the business demonstrates leadership in building a socially and environmentally responsible furniture business.

Stories like this inspire all of us at ASCM every day, which is why I’m thrilled to announce that we’ve just extended the deadline for this year’s awards program. In addition to the Making an Impact category, corporate awards include Learning and Development and Corporate Transformation. The 2024 Call for Entries will remain open through May 31.

Of course, supply chain achievements aren’t possible without expert leadership. Therefore, our awards also recognize supply chain leaders and emerging leaders who are advancing the profession. (Learn more about individual awards here.) One such honoree, Amy Augustine, proves this commitment both through her work at UScellular and her service as a distinguished ASCM board member. You can join Augustine and many other remarkable industry professionals by volunteering for our board or nominating a deserving colleague. This application is also open through the end of the month.

The next two weeks are clearly going to be exciting ones here at ASCM! Our teams will have the privilege of reviewing inspiring award and board submissions and witnessing dedication pouring in from supply chain professionals across the globe. Moreover, this experience reinforces the profound impact our industry has on the world around us. So, don't miss your chance to be part of this movement — submit your ASCM Awards of Excellence or board of directors nomination today!

Fuel Supply Chain Innovation with Military Principles

Wed, 22 May 2024 00:00:00 -0500

Editor’s note: May is Military Appreciation Month, and ASCM is honored to feature content from retired U.S. Army Reserve Special Forces Officer Chad Storlie. A returning ASCM contributor, he offers valuable insights gleaned from his military experience, highlighting key parallels that can ignite innovation within businesses. Storlie demonstrates how military principles can be harnessed to drive success in the corporate landscape. Furthermore, amid an ongoing supply chain talent shortage, his points clarify the value of transferable skills and strategies.

While special operations forces and corporate teams might seem like worlds apart, both share a common goal: achieving success in dynamic environments. By delving into military strategies, supply chain organizations can unlock a treasure trove of practical tactics to fuel innovation.

Just like special operations forces prioritize character in their rigorous team-building process, companies should value integrity, diverse backgrounds and unique experiences when hiring. These qualities foster a culture of innovation. Likewise, before embarking on a mission, businesses should mirror the meticulous planning of the military by deeply understanding stakeholder present and future needs.

Similar to how special operations forces use data and analytics to inform their missions, businesses can leverage data and experiments to test and refine ideas. This leads to improved planning and execution. Additionally, military groups thrive on free-flowing information across all ranks. Businesses should emulate this by encouraging open communication and fostering a culture where everyone contributes to the success of an idea. Once a plan is set, everyone needs to be fully invested in execution.

Fear of failure shouldn't stifle innovation; rather, people can make discoveries everywhere. Innovation often stems from the insights and initiative of individuals. Businesses should encourage employees to take ownership and find creative solutions to problems. Additionally, military personnel draw inspiration from past victories. Companies can nurture a sense of pride by connecting employees to the company's history, showcasing past successes that provide valuable lessons for future challenges.

Military missions begin with a clear mission statement understood by everyone in order to lead through uncertainty. Supply chain organizations can likewise ensure every employee understands their value and how their actions contribute to the big picture. Plus, just as rigorous training prepares soldiers, businesses should invest in training and development to ensure employees are equipped to adapt and excel even during crises. Military commanders also clearly define their vision for mission success. Businesses can translate this by articulating a clear vision and empowering employees to make decisions and adapt their approach based on changing circumstances.

Ethical behavior strengthens performance during challenging times. Companies must emphasize company values and ethical conduct, especially during periods of uncertainty, to ensure trust among employees, customers and stakeholders.

Finally, special operations forces regularly analyze operations to identify areas for improvement. Businesses can benefit from similar post-project reviews to learn from successes and failures, foster collaboration, and refine future strategies.

By adopting these military-inspired principles, supply chain organizations can create a culture of innovation, empower their teams and navigate uncertainty with greater agility — all contributing to a more successful and resilient future.

Read more from the author:

5 Military Principles to Help Supply Chain Organizations in Uncertain Times

Insightful Innovation Strategies from the Military

Surprising Special Ops Skills Pertinent to Business Innovation

How Will Tariffs on China Shift the Supply Chain Landscape?

Fri, 17 May 2024 00:00:00 -0500

After years of supply chain uncertainty, it’s easy to believe that greater availability of crucial electronic components, medical supplies and agricultural products is a good thing. But anyone with a basic understanding of economics knows that an oversupply of anything can have negative consequences — namely, a precipitous drop in prices. When it comes to medicine and food, that’s not a bad outcome for the consumer. But it’s also vital to keep our farmers and factories afloat with balanced costs and fair business practices.

This week, the U.S. government and President Biden asserted that China is “flooding” the supply chain with electric vehicles and steel, among other products, with the goal of reducing prices and forcing the United States to import goods instead of manufacturing them onshore, CNN reports. “The Chinese government, Biden argued, is providing state money to Chinese steel companies to make more steel than the economy demands, pushing down the price and making it impossible for other companies to compete.”

The United States is not alone in the assessment that China is trying to “revive its economic fortunes” by saturating the world with cheap goods: The Wall Street Journal reported earlier this year that the United States, the European Union, and emerging economies including Brazil and Mexico are “joining the backlash, zeroing in on Chinese imports of steel, ceramics and chemicals that they suspect are being dumped on their domestic markets at knockdown prices.”

Now, the White House has announced a new round of significant tariffs on China to demonstrate prioritizing American supply chains and bolster national security. The tariffs will affect imported steel and aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes and medical products. Rates range from 100% on electric vehicles, to 50% for solar components, to 25% for all other sectors, CNN explains. Onshoring and U.S.-based technological advancement have long been goals of the Biden administration, though he acknowledges that China may retaliate with similar tariffs. The Chinese government has already promised to do so, per Bloomberg News.

Staying competitive in the job market

The fight for balanced trade with China creates uncertainty for American businesses, particularly those in supply chain. This underscores the importance of a skilled and adaptable workforce. Enter ASCM’s 2024 Supply Chain Salary and Career Report. It’s our annual research into the most important part of the industry: the people. Based on more than 5,000 survey responses, this analysis will help you better understand your career today and how to excel in the future. Whether you’re evaluating your team’s ability to handle global affairs, honing your own strategic competition know-how or just want to see how your salary compares, download the report today and get the latest information on supply chain careers across the globe.

Not a member? Join ASCM’s membership community today for just $10 per month to enjoy the full report and so much more. Then, register for our upcoming members-only webinar that will delve deeper into many key findings, including top skills sought by employers, career paths of supply chain professionals and so much more.

Unlocking a Supply Chain Efficiency Evolution

Fri, 10 May 2024 00:00:00 -0500

Once a realm of manual processes and limited visibility, supply chains everywhere are embracing cloud platforms, robotics, the internet of things, artificial intelligence and numerous other exciting digital technologies. These powerful tools streamline operations, optimize inventory and help predict demand — revolutionizing supply chain management and fueling the development of ever-more advanced solutions. The future of our industry is brimming with potential for unprecedented efficiency and agility.

For instance, in the news this week is a gigantic 3D printer that is “reinventing manufacturing,” per Fast Company. The thermoplastic-polymer printer can create objects as large as 96 feet long, 32 feet wide and 18 feet high. It prints as much as 500 pounds of material per hour — enough to produce a 600-square-foot house in less than four days. Better yet, it does this using renewable biomaterials and even waste products such as sawdust. There are quality control checks integrated into the system, including AI-powered sensors that ensure printing precision and self-correct if gaps become too large or pieces get out of alignment.

3D printing has many potential applications, notes Supply Chain Digital, including reducing complexity, increasing speed to market, reducing global impact and enabling remote locations to print replacement parts. Cost reduction is a noted benefit, as well.

Another technology that’s making a big impact these days is, of course, AI. In fact, according to a McKinsey survey, companies say that the most significant AI-related cost savings exist in their supply chain organizations. As an example, Coca-Cola just signed a $1.1 billion agreement with Microsoft to use the tech company’s AI services to explore “improving the customer experience, streamlining operations, fostering innovation, improving competitive advantage, boosting efficiency and discovering growth opportunities,” reports Supply Chain Dive. The contract comes just four years after their last $250 million deal, showing that both parties are excited about the direction generative AI has taken in a short period of time.

Correspondingly, the makers of generators and batteries for the data centers powering AI models are having a boom, reports The Wall Street Journal. In fact, over the past year, orders for data-center electrical gear have more than doubled, alongside consumer demand for AI-enabled streaming services, online shopping and more. At Stream Data Centers in Chicago, the warehouse buildings “host thousands of servers, backed up by banks of batteries and diesel generators … [where] blips, sags, dips or anything else less than a smooth, continuous flow of electricity aren’t tolerated,” the article explains. Notably, today’s servers and computer chips require twice as much power per square foot than a decade ago.

Your tech expertise matters

Technological know-how is essential for supply chain professionals, which is why ASCM developed the Supply Chain Technology Certificate. With this credential, you’ll gain a comprehensive understanding of emerging technologies and their essential role in your networks. Learn how to propose innovative ways to improve supply chain functionality, evaluate the benefits and risks of specific solutions, and make informed decisions during implementation. Start exploring transformational technologies today, and you’ll quickly position yourself as a tech-savvy professional who creates lasting value.